Budget 2026 Expectations Highlights: Nirmala Sitharaman set to present Union Budget tomorrow; green energ... - The Economic Times

Yuvraj Shidhaye, Founder and Director, TreadBinary, “The Indian startup ecosystem has shown strong resilience and maturity over the past few years, supported by proactive government policies. In the upcoming budget, a key expectation is to further strengthen this momentum by making inward foreign direct investment more accessible while maintaining necessary safeguards. Simplifying compliance, filing, and auditing processes, especially for early-stage startups, would significantly improve ease of doing business. Additionally, expanding subsidies and incentives beyond Tier 1 cities to Tier 2 and Tier 3 regions can unlock untapped entrepreneurial potential and promote balanced growth. With the right policy support, startups, particularly in emerging technologies like blockchain and fintech, can play a critical role in building globally relevant platforms from India.”

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Kamal Pal Hoda, CEO & Executive Director, Bluspring Enterprises: “India’s next infrastructure leap will be defined less by what we build and more by how reliably we operate it. The Budget has an opportunity to recognise infrastructure not just as capital expenditure, but as a long-term operating system—where uptime, safety, compliance and workforce capability determine real outcomes. Across hospitals, factories, telecom networks and public campuses, failures rarely come from lack of assets; they come from fragmented operations, under-skilled frontline roles and inconsistent execution. Targeted support for digital asset management, predictive maintenance and integrated operations can materially improve safety, productivity and lifecycle value. Equally important is treating India’s blue-collar workforce as a national capability. Investments in vocational skilling, formalisation and social security will convert frontline jobs into skilled careers, improving reliability across mission-critical sectors. By incentivizing compliance-first, tech-enabled integrators and vocational skilling for blue-collar roles, we can elevate frontline workers into a strong national force, boosting safety, productivity, and lifecycle ROI. This shifts us from vendor chaos to accountable, nation-scale systems—essential for 7%+ GDP growth.”

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Gig economy experts expect the upcoming budget to be firmly centred on gig worker welfare. India’s gig economy runs on millions of workers who often work part-time or across multiple platforms. For them, social security cannot be conditional on rigid eligibility thresholds, Rahm Shastry, CEO of DriveU, says.

"We would like to see the full implementation of the Code on Social Security, 2020, with practical adjustments—especially lowering or removing the current 90–120 day eligibility requirement—so more gig workers can access basic health and accident cover," he said.

He also said that a centrally managed national social security fund, supported through shared contributions from both aggregators and workers, can create a fair and sustainable model where benefits are portable across platforms and workers retain agency through their own contribution. "Beyond accident cover, gig workers need comprehensive protection: life insurance, disability support, health and maternity benefits, and old-age security. The absence of structured benefits remains one of the biggest challenges in the gig economy, and Budget 2026 has a real opportunity to take a meaningful step in the right direction," Shastry added.

The luxury auto industry views the Union Budget 2026 as a pivotal opportunity to further reinforce India’s growth momentum and strengthen consumer confidence, especially in the wake of the current geopolitical environment, says Balbir Singh Dhillon, Brand Director, Audi India.

"The luxury automobile sector is closely aligned with macroeconomic stability, rising disposable incomes, a conducive business environment, and a buoyant equity market—all of which contribute to positive consumer sentiment," he said.

"Continued emphasis on infrastructure development—particularly roads and high-speed charging infrastructure—along with rationalisation of taxes/duties, a stable long-term policy framework, and steady foreign exchange conditions will be instrumental in accelerating growth in the luxury car industry," he added.

In the upcoming Union Budget, investors in virtual digital assets (VDA) are seeking relief on the taxation framework, particularly the ability to claim losses, even as gains from cryptocurrency remain taxable at 30 per cent under Indian law, Rohit Garg, Partner at Shardul Amarchand Mangaldas & Co, said.

"Now, any investor, like you and me, if we are investing in cryptocurrency and earning any gain out of it, that is being taxed at 30 per cent. However, the concern which is being raised by the investor community is, if you are taxing us on the gains, please provide us the benefit of any loss that is being made," Garg said in an interview with ANI in the national capital.

Garg said VDA taxation is provided under the Income Tax Act, 1961, and has been carried forward in the new income tax code. He said VDA covers cryptocurrencies, including Bitcoin and other stablecoins. He added that the need of the hour is that, if India wants to tax and continue to tax such gains and losses -- which are otherwise allowable for other capital assets-- VDA investors should be allowed to claim them as well.

India Union Budget 2026 Expectations Live: "On digital infrastructure, harmonised incentives and long‑tenor financing for data centres, fibre and towers alongside PLI expansion for telecommunications equipment can anchor India's data‑economy ambitions. Since Budget 2022 granted infrastructure status to data centres, the focus must shift to comprehensive policy measures, including PLI expansion for the entire digital infrastructure value chain covering networking equipment, data centre hardware and telecommunications manufacturing," said Abir Lal Dey, Partner at Saraf and Partners.​

Also read: Will Union Budget 2026 send a 'green' signal to data centres?

• Incentivise semi -rban rural health care workers
• Use AI technology to bridge and compliment health care services especially in rural areas
• More investments in primary and preventive care to include antenatal care, vaccinations and nutrition of children
• Create awareness and measures to prevent communicable diseases like respiratory illnesses, vector borne diseases and gastrointestinal infections
• Create awareness about the increasing burden of non communicable diseases and preventive measures to control life style illnesses
• Since cancer is growing in leaps and bounds invest in creating awareness , prevention ,surveillance , early detection and care of these patients
• Have more centres in each district for intensive care and super specialty care

India Budget 2026 Expectations Live: "As Budget 2026 approaches, we hope the Government takes measures to further strengthen the credit ecosystem for MSMEs and retail customers, where NBFCs play a critical role in delivering last-mile financing," Pinank Shah, CEO, Capital India Finance Limited said.

Some of the key expectations include:

• Extending SARFAESI rights to NBFCs across all loan values. This will help accelerate recovery processes, reinforce credit discipline, and ultimately reduce borrowing costs for customers.
• Launching a dedicated refinance/liquidity window for MSME-focused NBFCs to ensure steady and cost-effective access to funds for underserved segments.
• Improving access to long-term funding for NBFCs financing long-tenor assets, which will help ease asset–liability mismatches and support sustainable balance-sheet growth.
• Putting in place policies to further strengthen digital public infrastructure for credit—through consent-based data sharing and interoperable registries—to enhance underwriting quality and enable faster, more informed lending decisions.

India Budget 2026 Expectations Live: "With quick commerce and hyperlocal retail expanding rapidly beyond metro cities, focused investment in last-mile infrastructure, urban warehousing, and local fulfilment hubs is essential. Clearer policies around zoning, compliance, and logistics costs can significantly improve execution efficiency for fast-delivery and omni-channel retail models," says Madhu Sudan Pahwa, Managing Director, Womancart

India Union Budget 2026 Expectations Live: "Rationalization of the GST rates on the necessity-based home and kitchen appliances would help improve affordability and accelerate the entry into Tier 2 & Tier 3 markets. In the manufacturing areas, continued focus on PLI schemes and reduced import duties for key components and raw materials would help domestic manufacturing scale up," said Tushar Gupta, Director of Operations, Thermocool Home Appliances Ltd.​

The consumer durable industry also awaits increased incentives for R&D in innovative new products, including AI and IoT solutions in the area of energy efficiency and sustainability.

India Budget 2026 Expectations Live: “As we approach Union Budget 2026, the general insurance sector is at an important inflection point where the focus has shifted from rapid topline expansion to sustainable, disciplined growth," said Naveen Chandra Jha, MD & CEO of SBI General Insurance.

"The budget presents an opportunity to deepen insurance penetration by improving affordability and access, particularly in underinsured segments such as small businesses, rural households and first-time buyers. Targeted incentives for micro-insurance and social sector covers, along with relief on policy-level costs for low-premium products, can materially accelerate last-mile adoption," Jha added.

The Union Budget 2026 can also play a catalytic role in strengthening India’s risk resilience by encouraging the development of climate-risk insurance solutions, he suggested, adding that continued emphasis on data-led reforms such as unified insurance data exchanges and consent-based digital infrastructure can improve underwriting accuracy, curb fraud and enhance the claims experience.

Budget 2026 Expectations Live updates: PwC has laid down the following key aviation expectations from the forthcoming Budget:

• Public-private partnerships (PPP) is expected to increase from 14 to 25 in the next 2 years in line with the National Monetisation Pipeline (NMP)
• UDAN scheme will be further strengthened to ensure affordable and reliable air connectivity for all regions, with focused interventions for hilly, remote, and North-Eastern areas, promoting balanced regional development.
• Efforts will be made to progressively bring aviation turbine fuel under the GST framework, alongside incentivising states to rationalise VAT on ATF.
• GIFT City will be strengthened as a global hub for aircraft leasing and financing.
• Domestic capabilities in maintenance, repair and overhaul, and aerospace manufacturing will be scaled up.
• India will modernise bilateral air service agreements and develop its airports as globally competitive transit hubs.
• A seamless digital air travel ecosystem will be created through the expansion of DigiYatra, deployment of AI-enabled air traffic management systems, and transition to end-to-end paperless processes.

Also read: Budget 2026: India’s big planes and bigger flying dreams eye a safer runway

India Union Budget 2026 Expectations Live: "Budget 2026 arrives at a defining moment for India’s logistics and maritime sectors, which can be the key enabler for economic growth. With global trade dynamics evolving rapidly, India has a unique opportunity to position itself as a resilient economy supported by a robust, efficient, and future-ready logistics ecosystem," said Shashi Kiran Shetty, Founder & Chairman of Allcargo Group.

The next phase of growth of logistics industry could focus on accelerating capacity creation across ports, industrialisation around coastal zones, improving coastal and hinterland connectivity at par with developed nations, and an evolved shipbuilding industry while deepening digital adoption across the supply chain, to support India’s trade ambitions, Shetty said.

He suggested some other reforms too:

• Development of deep-water ports, modernisation of port infrastructure, and strengthened port-linked connectivity are laying the foundation for India’s positioning as a global transshipment hub. Budget 2026 can focus on the development of deep-water ports, modernisation of port infrastructure by introducing low-cost and long term financing, sharpening tax incentives and fast-track approval system to support private investors.
• It would also be important to strengthen production-based incentives (PLIs) as well as tax incentives for MSMEs, to promote port-centric manufacturing and logistics activities.
• Indigenous manufacturing in coastal zones would aid in improving export trade from the country, and that is an area which this budget could target to incentivise.
• Budget 2026 could look at incentivising and fast-tracking the establishment of skill development centres and R&D centres, through international partnerships and private participation.
• Government could continue to support digitisation of logistics, as the industry would benefit immensely if public systems databases are integrated securely with organisational data.

"Overall, the logistics industry expects Budget 2026 to continue the focus on incentivising private participation in infrastructure creation, capacity building, digitisation, skill development, and sustainability - empowering the sector to support the journey toward Viksit Bharat 2047 with scale, resilience, and global relevance," he added.

India Union Budget 2026 Expectations Live: One of the most direct ways the Budget could influence silver prices and demand is through import duty adjustments.

India imports over 80% of its silver needs, implying that any tariff change has a quick impact on domestic pricing and demand patterns. Currently, silver attracts a customs duty of around 7.5 percent in India, along with GST at 3 percent, with prices often fluctuating based on global trends.

Ahead of Budget Day, analysts expect that if the government reduces import duty, domestic prices could soften, making physical silver more attractive to jewellery buyers and investors. However, if duties are tightened, the opposite could occur, pushing domestic prices even higher and potentially constraining demand among cost-sensitive consumers.

Union Budget 2026 Expectations Live: “As the Budget approaches, real estate developers are closely watching how policy responds to the changing economics of urban housing. Construction costs, compliance requirements and capital costs have risen structurally over the past few years, while pricing power has remained selective," says Pakshal Sanghvi - Managing Director of Sanghvi Realty.

"The next phase of growth will depend less on incentives and more on predictability—stable tax policies, faster approval frameworks and infrastructure-led planning. For developers, clarity is more valuable than concessions. A Budget that improves visibility on long-term urban development, financing access and execution certainty will help the sector plan responsibly rather than reactively," he added.

Also read: Union Budget 2026: Sitharaman & Co may finally make affordable homes and faster commutes reach the aam aadmi

India Union Budget 2026 Expectations Live: "With the fiscal deficit still targeted at around 4.5-5% of GDP and government capex already budgeted at close to ₹11 trillion, there is limited headroom for additional large, consumption-led stimulus. In this context, consumption growth is expected to remain uneven—urban and premium segments, which have been growing at 10-15%, should continue to outperform, while mass and rural consumption is more likely to see a gradual recovery rather than a sharp rebound," said Namit Puri, India Leader - Consumer Goods Practice, BCG.

"Rural demand, which has been growing in the low single digits over the past year, should stabilise but is unlikely to see a sharp acceleration without a sustained improvement in farm incomes and non-farm employment. For discretionary spends, we expect continuity rather than stimulus. Higher-income consumers will keep driving growth in travel and lifestyle, even as broader demand remains uneven," Puri added.

India Union Budget 2026 Expectations Live: Rohit Santosh, CEO, Bombay Realty (Wadia Group) says, "As we approach Budget 2026, our focus is on a policy framework that acknowledges the growing premiumization of India’s housing market, driven by evolving lifestyles, global benchmarks, and the demand for well-planned large layout developments."

We hope the government will address long-standing structural constraints such as the ₹10 crore cap on capital gains reinvestment and grant ‘Industry Status’ to the sector, he said, adding that enhancing home loan interest deductions to a minimum of ₹5 lakhs and rationalising GST to restore Input Tax Credit would significantly support the aspirational and premium homebuyer segments alike.

India Budget 2026 Expectations Live: ​“Budget 2026 has the potential to be a defining inflection point in accelerating India’s logistics transformation under the PM Gati Shakti vision. Building on the progress made in recent years, the next phase of growth will depend on deeper integration of infrastructure planning across air, road, rail, and multimodal networks, supported by faster adoption of digital platforms that enable seamless coordination across the logistics value chain," said Balfour Manuel, Managing Director at Blue Dart.

"For the express logistics sector, sustained investments in airport infrastructure, cargo handling capacity, and regional air connectivity will be critical to improving turnaround times and supporting high-value, time-sensitive shipments. In parallel, wider adoption of digital enablers such as unified logistics platforms, data-driven visibility, and paperless processes - can further enhance predictability, transparency, and ease of doing business for exporters and MSMEs alike," he added.

"Differential taxation that favours greener modes of transport could accelerate modal shifts more effectively than standalone subsidies. Alongside this, focused investments in EV charging and alternative fuel infrastructure would help address practical adoption challenges, particularly across long-haul movements and urban delivery operations," the Blue Dart chief said.

India Budget 2026 Expectations Live: "From the Union Budget 2026, the IT and BPM industry would welcome measures that accelerate digital innovation while supporting the creation of high-value jobs,"said Nitin Chandalia, India Leader - Technology, Media and Telecommunications Practice, BCG.

• One priority is incentivising investments in frontier technologies such as AI, cloud, and cybersecurity, alongside targeted skilling initiatives to help bridge the digital talent gap.
• The government could also build on the success of Digital Public Infrastructure by expanding its application beyond payments and identity to sectors such as healthcare, logistics, and manufacturing, unlocking productivity and efficiency gains.
• For the BPM sector, clearer and more predictable policies for remote operations, data governance, and cross-border service delivery would help sustain export competitiveness and strengthen India’s appeal for global clients.

"Overall, the Budget should focus on enabling a future-ready digital ecosystem that supports innovation, promotes upskilling, and reinforces India’s position as a global technology and services hub," Chandalia said.

India Union Budget 2026 Expectations Live: NIIT Vice Chairman and Managing Director Vijay K Thadani has called on the government to scrap the 18% GST on AI skilling programmes and expand research funding to private institutions, saying affordable AI enablement and wider access to innovation funding are critical to building India’s global talent base.

He told PTI, "If AI enablement, which includes making people fluent in AI, is a very important initiative that we have to take, we have to make that available to people at the lowest cost... At the end of the day, there is an 18 per cent GST which is waiting there. Government can simply say, get rid of that. Just allow it to reach."

India Union Budget 2026 Expectations Live: "The rise of Affluent+ households is fundamentally reshaping demand, with this segment expected to drive 60–65% of incremental consumption growth by 2030. Their spending patterns varies significantly by categories with a significantly higher share directed toward experiences, premium staples, health, education, travel and leisure," said Namit Puri, India Leader - Consumer Goods Practice, BCG.

"On a PPP-adjusted basis, average Elite household income in India is already at par with European countries. Yet, premium penetration remains well below India’s true potential, reflecting vast under-consumption across categories both in terms of value and volume. With nearly 30 Mn affluent households, the scale of untapped opportunity is compelling," he said.

"Stable, predictable government policy, reinforced by Budget 2026 will be critical in sustaining consumer confidence, enabling long-term capital investment, and unlocking the next phase of India’s premium consumption journey," Puri added.

India Union Budget 2026 Expectations Live: As Budget 2026 approaches, technology clients are looking for clear policy signals to accelerate AI adoption, GCC evolution and manufacturing-led growth.

• AI enablement: compute, cloud and core infrastructure: Budget 2026 should prioritise compute access, cloud capacity and utility infrastructure to remove data centre and resource bottlenecks constraining AI scale-up.
• GCCs as strategic tech engines, not back offices: Policy clarity is needed to position GCCs as hubs for high-end engineering, R&D and AI, while easing compliance friction and addressing specialised talent gaps.
• Manufacturing and PLI: continuity and execution certainty: Technology manufacturers seek stable, long-term PLI frameworks with clearer eligibility, faster approvals and timely incentive disbursements.
• Policy and compliance clarity, including responsible AI: Clear and consistent guidance on cloud compliance, data protection, cross-border delivery and responsible AI is critical for confident, scalable adoption.
• Enterprise adoption: AI-led modernisation: Continued support for AI-driven enterprise modernisation will help move AI from pilots to scaled deployments and deepen India’s technology capabilities.
• Export competitiveness: technology manufacturing: Stable tariff regimes, improved export facilitation and supply chain alignment are key to strengthening India’s technology manufacturing export competitiveness.

(Source: PwC)

India Union Budget 2026 Expectations Live: “India’s mobility ecosystem is undergoing a decisive transformation, driven by rapid urbanization, progressive policy making and growing adoption of clean energy vehicles," Mayank Jain, CEO, Auto Classifieds, CarDekho Group says.

"As we approach Union Budget 2026, we are hopeful of continued policy momentum to further accelerate the growth pace of the industry. Support for shared and technology-led mobility solutions will be critical in shaping the next phase of growth for the automobile industry and addressing the evolving needs of Naya Bharat," he added.

2026 Budget Expectations Live updates: Susanta Ghosh, COO and BU, Green Steel, ACME Group calls for easier access to green financing and other measures to boost green steel

"Over the past couple of year, India’s clean-energy landscape has changed in a very real way. The momentum for industrial decarbonization in hard to abate sector like steel and cement has started. Green steel taxonomy and CCTS become a push," he said.

As we approach the Union Budget 2026-27, the government should focus on on measures that help close this gap:

• easier access to green financing,
• support for hydrogen and Natural gas based DRI,
• storage solutions that work at scale,
• a practical duty structure for essential equipment.

India Union Budget 2026 Expectations Live: As India prepares for Union Budget 2026–27, the clean energy sector is seeking tax, regulatory and financing clarity to unlock scale and global competitiveness.

Vineet Mittal, Chairman, Avaada Group, says, "As India advances towards its clean energy, manufacturing and green fuels ambitions, the Union Budget 2026–27 is a critical opportunity to remove structural cost distortions and create long-term investment certainty. On direct taxes, we strongly advocate zero income tax on dividends from renewable energy SPVs to their holding companies to enable efficient capital recycling and lower tariffs."

"Equally important is providing clarity that income earned during the construction period should be treated as capital receipt and reduced from project cost, which will significantly reduce litigation and improve ease of doing business," he added.

"On indirect taxes, energy storage must be recognised as a core power asset. While electricity is GST-exempt, BESS and pumped storage services attract 18% GST with no ITC benefit. Reducing GST on storage charges to NIL will directly lower the cost of renewable power," Mittal said.

The industry also seeks zero BCD and IGST for at least five years on capital equipment for manufacturing solar glass, ingots, wafers, cells, modules, batteries and advanced TOPCon and HJT technologies, where imported equipment currently inflates project costs by 20–30%.

Also read: Budget 2026: Supercharge this sector for global clout, domestic growth

India Budget Expectations Live updates: We would request the finance ministry to announce a budget that backs skills, stability, and sensible policy that will let hospitality do what it does best - create jobs, experiences, and long-term economic value, Teja Chekuri, Managing Partner – Ironhill India says.

He calls for the following reforms under Budget 2026:
• Invest in people: Launch targeted skilling programmes for hospitality and alco-bev service roles, developed with industry bodies, to bridge the chronic gap in trained kitchen, service, brewing, and bar talent.
• Enable long-term planning: Introduce predictable, multi-year excise and licence fee frameworks so brewpubs and alco-bev operators can confidently invest in capacity, innovation, and capex-heavy growth.
• Recognise hospitality as infrastructure: Grant infrastructure status to large hospitality projects (₹25 crore and above) to unlock longer-tenor, lower-cost financing and accelerate experiential destinations across tourism and IT hubs.
• Simplify GST compliance: Offer clear, stable GST guidelines for bundled offerings across events, catering, rooms, and F&B, to reduce disputes and compliance burdens for experience-led venues.​

India Union Budget 2026 Expectations Live: Anil Kumar Taparia, COO - Green Hydrogen and Ammonia, ACME Group says, "Over the past year, India’s green hydrogen and green ammonia story has finally moved from broad ambition to actual execution. The sector is benefiting from something it lacked earlier, an alignment between policy direction and industry readiness. With the National Green Hydrogen Mission and SECI’s tenders laying out pricing, timelines, and delivery terms, developers and financiers now have the clarity they need before putting serious money on the table."

"What will determine the next stage is connectivity, as the best-designed projects could remain stuck unless transmission infrastructure expands quickly, particularly in resource-rich states like Rajasthan and Gujarat," he added.

The budget must step in with dedicated funding, demand-aggregation tools, and greater flexibility on NFE norms for projects that are strategically important to the country, Taparia said.

"To move beyond pilots and build real scale, the ecosystem needs stronger offtake structures, sharper consumption mandates, and far more discipline across project delivery. Investors will only step in at size when pricing and supply stop fluctuating and become reliably steady. The upcoming budget has the potential to be a real pivot point," he added.

India Union Budget 2026 Expectations Live: Focused tax clarity measures can attract global capital, strengthen compliance, and reduce disputes for businesses operating in India. Here's what India Inc expects:

1. Facilitating Foreign Employees & GCC Expansion: Expand the deemed income regime under Section 44BBD to all non-resident service providers, easing compliance, reducing litigation, and supporting GCC growth amid global visa uncertainties.

2. Tax Neutrality for Fast-Track Demergers: Extend tax neutrality to fast-track demergers to preserve their efficiency, while relying on GAAR to address any valuation-driven tax avoidance concerns.

3. Certainty on Data Centres Not Creating PE: Introduce safe harbour, cost-plus rules for data centres so arm’s length remuneration eliminates permanent establishment disputes for foreign digital players.

4. Assessments on Hold During APA Process: Keep assessments in abeyance for years covered under APAs until agreements are finalised, preventing avoidable interim litigation.

5. Rationalising Share Buy-Back Taxation: Tax buy-back proceeds as dividends only up to accumulated profits, with the remainder treated as capital gains, aligning with capital reduction principles.

(Source: PwC Budget Expectations)

India Union Budget 2026 Expectations Live: The government may unveil a plan for the transformation of public sector banks, paving the way towards Viksit Bharat 2047.

The plan may outline the intent for a transformation roadmap for PSBs to break into the top 20 global banks, with a focus on best practices, including operational efficiency and corporate governance.

Click here to read full report

As Budget 2026 unfolds, people wait for familiar terms and check the government's list of priorities with key sectors, departments and ministries in focus. Who gets the most, and who gets the least, are the questions that envelop citizens' budget expectations.

This year, the following sectors are expected to be the government's key focus:
Infrastructure, Manufacturing, MSME, Green Energy, Digital Infrastructure, Export, Artificial Intelligence, Defence

As per a PwC report, the sectoral focus may be largely concentrated towards the priority sectors for ‘Make in India’ such as electronics, semiconductors, renewable energy, EVs, specialty chemicals, and defence/ aerospace.

Union Budget helps the Indian government plan revenue and spending in a structured way. It also supports welfare schemes, development programs, and long-term economic stability in the country.

The budget ensures that public money is used effectively to uplift people, drive development, and keep the economy stable and future-ready.

India Budget Live Updates: Work on Budget 2026 started long before it will be presented on February 1. The Finance Ministry issues Budget Circulars to ministries and departments, giving guidelines on the information that needs to be submitted.

1. Pre-Budget estimates: Each ministry and office submits their department’s receipts and expenditures for the current and previous fiscal years. They also submit estimates of financial needs for the next fiscal year. The data is then reviews by senior officials and approved or revised before forwarding it further.
   
2. Inter-ministerial consultations: The ministries examine the compiled data and then send it to the Finance Ministry for economic feasibility checks. The Finance Ministry evaluates the estimates against available resources and the broader economic situation.
   
3. Cabinet approval, Budget printing: The Finance Ministry allocates revenues to administrative ministries and drafts proposals for new public welfare schemes. It also consults the Union Cabinet in case of disputes. The Budget then moves to the printing stage with the traditional halwa ceremony.
   
4. Budget presentation in Parliament: The Finance Minister presents the Union Budget in Parliament on February 1
5. Implementation after approval: The Budget is then passed by the Parliament and ministries and departments receive the funds allocated to them.

Budget Live News: India's middle class may be expecting changes in income tax slab with a hike in standard deducation under the Income Tax Act.

The Economic Survey released on January 29, said that significant tax relief for households has already been provided and India’s fiscal deficit is below the set target.

A fiscal deficit occurs when the government's total expenditure exceeds its total revenue from sources like tax, disinvestment, etc (excluding borrowings) during a fiscal year, which shows that the government needs to borrow more to cover the shortfall.

Read more: Budget 2026: Income tax cuts and cheaper goods? Here’s what many Indians want

Union Budget 2026-27 Live: Finance Minister Nirmala Sitharaman will present the Budget in Parliament tomorrow.

The Press Information Bureau (PIB) is expected to live-stream the Budget Speech across its channels. Meanwhile, you can also watch Sitharaman's Budget Speech live on the Economic Times website.

2026 Budget News Live: The Union Budget 2026-27 is set to be presented on February 1, with Sitharaman poised to present her ninth consecutive Budget in Parliament.

This will be the first time in over a decade that the Budget will be presented on a Sunday. The Budget Session of Parliament began on January 28 and is scheduled to continue till April 2.

The Budget speech is expected to begin around 11 AM as the Parliament meets for the Session.