Budget 2026-27
Analysis of the Annual Financial Statement, Ministry Allocations, and Strategic Pillars of Viksit Bharat.
Total Expenditure
FY 2026-27 BE
Fiscal Deficit
~4.3% of GDP
Capital Exp.
Capex Push
Revenue Receipts
Net Tax + Non-Tax
At a glance
- 01Total Union Budget 2026-27 expenditure is ₹53,47,315 Cr; capital expenditure accounts for 22.8% of the displayed total.
- 02The fiscal-deficit target is 4.3% of GDP (₹16,95,768 Cr), compared with 5.1% in FY 2024-25.
- 03Under the displayed new-regime rules, the rebate produces no tax liability up to ₹12 lakh of eligible income. Deductions and final liability depend on the applicable rules and taxpayer circumstances.
Where Money Comes & Goes
Revenue Sources
Net Tax Revenue (Centre)
Direct + indirect taxes (net)
₹28,66,922 Cr
53.6%
Non-Tax Revenue
Dividends, profits, fees
₹6,66,228 Cr
12.5%
Non-debt Capital Receipts
Recoveries + other receipts
₹1,18,397 Cr
2.2%
Borrowings & Other Liabilities
Fiscal deficit financing
₹16,95,768 Cr
31.7%
Expenditure Priorities
States' Share of Taxes (Devolution)
Share of central taxes
₹15,26,255 Cr
28.5%
Interest Payments
Debt servicing
₹14,03,972 Cr
26.3%
Capital Expenditure
Infrastructure & assets
₹12,21,821 Cr
22.8%
Other Spending
Remaining expenditure
₹11,95,267 Cr
22.4%
Other spending is derived from remaining total expenditure after major heads.
Transfers to States & UTs
Total Transfer to States/UTs
Transfers + grants + schemes
₹26,20,769 Cr
States' Share of Taxes
Devolution of central taxes
₹15,26,255 Cr
Budget Balance
Fiscal deficit is estimated at 4.3% of GDP.
₹16,95,768 Cr
Borrowings fund the gap between receipts and expenditure.
Ministry-wise Allocations
| Ministry / Sector | Description | Allocation (BE 26-27) | Share of Total |
|---|---|---|---|
Interest Payments | Service of National Debt | ₹14.40 L Cr | 26.9% |
Defence | Modernization & Border Infra | ₹5.55 L Cr | 10.4% |
Food Subsidy | Food Security (Consumer Affairs) | ₹3.02 L Cr | 5.6% |
Road Transport | National Highways & Roads | ₹2.82 L Cr | 5.3% |
Railways | New Tracks & Rolling Stock | ₹2.78 L Cr | 5.2% |
Fertilizer Subsidy | Farmer Support | ₹1.77 L Cr | 3.3% |
Home Affairs | Police & Internal Security | ₹1.53 L Cr | 2.9% |
Agriculture | Farmer Welfare Schemes | ₹1.13 L Cr | 2.1% |
Rural Development | Incl. MGNREGA | ₹92,322 Cr | 1.7% |
Communications | Telecom Infrastructure | ₹89,335 Cr | 1.7% |
Education | School & Higher Ed | ₹71,148 Cr | 1.3% |
Health | Public Health | ₹54,331 Cr | 1.0% |
Science & Technology | R&D Support | ₹41,670 Cr | 0.8% |
Labour | Employment Schemes | ₹33,215 Cr | 0.6% |
Atomic Energy | Nuclear Power | ₹13,563 Cr | 0.3% |
External Affairs | Diplomacy & Aid | ₹13,467 Cr | 0.3% |
Space | ISRO Missions | ₹6,375 Cr | 0.1% |
New Tax Regime
AY 2026-27| Income Slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹20,00,000 | 20% |
| ₹20,00,001 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Key Schemes & Missions
Biopharma SHAKTI
NewMission to build India as a global biopharma manufacturing hub, including NIPER upgrades and clinical trial networks.
₹10,000 Cr (5 years)
India Semiconductor Mission 2.0
NewExpands into equipment, materials, IP design, and skill development to deepen the domestic value chain.
Electronics Components Manufacturing Scheme
Scale-upOutlay raised to deepen electronics manufacturing and supply chains.
₹40,000 Cr
Rare Earth Corridors
NewDedicated corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to boost mining and processing.
Container Manufacturing Scheme
NewBuilds a globally competitive container manufacturing ecosystem.
₹10,000 Cr (5 years)
Integrated Textile Programme
NewFive-part initiative to modernize textiles, boost skilling, and promote sustainable manufacturing.
Tax Changes
Headline rate and duty changes from the Finance Bill — grouped by direction. Not exhaustive; see the AFS PDF for the full schedule.
Reduced / Exempted
TCS on overseas tour packages cut to 2%
TCS reduced from 5%/20% to a uniform 2%.
TCS on LRS education/medical remittances cut to 2%
Lower TCS for education and medical remittances under LRS.
TCS on tendu leaves reduced to 2%
Lower TCS rate for tendu leaves under the tax reforms list.
Customs duty exemptions for select healthcare items
Exemptions for 17 cancer drugs and drugs/foods for 7 rare diseases.
Customs duty exemptions for manufacturing inputs
Exemptions on parts/components for microwave ovens, aircraft manufacturing, and lithium-ion cell capital goods.
Rationalization
Uniform customs duty for personal imports
Uniform customs duty for personal imports and gifts to simplify compliance.
No headline rate increases highlighted in official summaries.
Budget Speech
Finance Minister Nirmala Sitharaman, Lok Sabha, 1 February 2026 — official text via the buttons above.