Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, allocating a record ₹11.1 lakh crore to capital expenditure while making a bold pivot toward green infrastructure, renewable energy, and climate-resilient agriculture.
The headline fiscal deficit target of 4.5% of GDP was maintained, marginally above the 4.4% achieved in FY26, as the government prioritised growth-oriented spending while managing the balance sheet carefully. Gross market borrowings were pegged at ₹14.82 lakh crore, broadly in line with market expectations.
Green energy received the largest allocation jump—₹2.2 lakh crore across solar, wind, hydrogen, and grid infrastructure—as India accelerates toward its 2030 target of 500 GW renewable capacity. The Budget also introduced a ₹50,000 crore Green Sovereign Bond programme to fund climate projects.
Personal income tax saw significant relief for the middle class. The basic exemption limit under the new tax regime was raised from ₹3 lakh to ₹4 lakh, and the 30% slab threshold moved from ₹15 lakh to ₹20 lakh. These changes are estimated to put ₹37,000 crore back in the hands of salaried taxpayers.
The agriculture sector received ₹1.67 lakh crore, with a major focus on micro-irrigation, precision farming, and a new National Kisan Digital Platform offering real-time soil health data, crop insurance automation, and direct benefit transfers.
Railways and roads together received ₹3.8 lakh crore, with 19 new expressway projects and 8 semi-high speed rail corridors announced. The PM Gati Shakti infrastructure push continues to reshape connectivity across tier-2 and tier-3 cities.
