Finance minister Nirmala Sitharaman NEW DELHI: Union finance minister Nirmala Sitharaman on Sunday delivered a 1 hour 25 minute presentation of the Union Budget 2026-27, marking her record ninth consecutive budget. She made several major announcements covering income tax, defence, railways, MSMEs, healthcare, and more.The budget was hailed as “historic” by Prime Minister Narendra Modi, who described it as a “high flight toward Viksit Bharat” by 2047, shortly after FM Sitharaman’s presentation in the Lok Sabha.Here are the 10 big announcements from Union Budget 2026Defence – The Union Budget 2026 has allocated Rs 7.85 lakh crore to the Defence Ministry, up from Rs 6.81 lakh crore last year. Out of this, Rs 2.19 lakh crore will go toward modernising the armed forces, including Rs 63,733 crore for aircraft and engines and Rs 25,023 crore for the Navy. The remaining Rs 5.54 lakh crore will cover running expenses, including Rs 1.71 lakh crore for pensions.Railways – The FM Sitharaman proposed seven high-speed rail corridors connecting major cities—Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri—to promote an environmentally sustainable passenger system. The Railways has been allocated a strong capital expenditure of Rs 2,93,030 crore to boost infrastructure-driven growth and fast-track the vision of Viksit Bharat. She also announced a new dedicated freight corridor linking Dankuni in West Bengal to Surat in Gujarat to ensure efficient and eco-friendly movement of goods across the country.Income Tax – Sitharaman announced that the Income Tax Act, 2025 will come into effect from April 1, replacing the six-decade-old tax law. The new law simplifies rules and forms, making compliance easier for taxpayers, and is revenue neutral with no change in tax rates. It cuts sections by about 50%, removes ambiguities, replaces the assessment year with a single “tax year,” and allows TDS refunds even if ITRs are filed late without penalties.Rare-earth – The Budget proposed supporting mineral-rich states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu in setting up dedicated rare earth corridors. This builds on the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ launched in November 2025, which has a financial outlay of Rs 7,280 crore. The scheme aims to create 6,000 metric tonnes per year of integrated REPM manufacturing capacity in India, covering the complete production chain from rare-earth oxides to finished magnets.Health – The Union health ministry has been allocated Rs 1,06,530.42 crore in Budget 2026-27, a 10% increase from last year, according to news agency PTI. FM Sitharaman announced a scheme to set up five regional medical hubs with private-sector support to boost medical tourism. Existing allied healthcare institutions will be upgraded, and new ones established, training 1 lakh professionals across 10 disciplines over the next five years. A Rs 10,000 crore investment proposed over the next five years to make India a biopharma manufacturing hub, establish 1,000 clinical trial sites, and strengthen the Central Drugs Standard Control Organisation.Boost to MSMEs – The minister proposed a three-pronged strategy to boost MSMEs, including a dedicated Rs 10,000 crore fund to help them grow as ‘Champions’. In her Budget speech, she said the Modi government’s reforms aim to create jobs, increase productivity, and accelerate growth. She outlined “three kartavyas”: accelerate and sustain economic growth, fulfil aspirations and build capacity, and Sabka Sath, Sabka Vikas. Under the first, she highlighted six interventions, including support for Champion MSMEs.Education – It also included boost to education with a National Institute of Design in eastern India, five university townships near industrial corridors, and a girls’ hostel in every district for STEM students. Four telescope facilities for astrophysics research will be set up, and a high-powered ‘Education to Employment and Enterprise Committee’ will align skills with jobs and emerging technologies like AI. Under ‘Orange Economy’, FM also proposed content creator labs in schools and colleges to create ‘future-ready jobs’.Banking – A “High Level Committee on Banking for Viksit Bharat” was proposed to review the sector and align it with India’s next phase of growth. She said the committee will focus on financial stability, inclusion, and consumer protection. Highlighting the strength of India’s banking sector, she noted strong balance sheets, record profitability, improved asset quality, and coverage of over 98 per cent of villages.Agriculture – The Budget also outlined major reform for the agriculture sector, the FM announced announced the launch of ‘Bharat Vistar’ a multilingual AI tool set to integrate AgriStack portals and ICAR’s agricultural practices with advanced AI systems, transforming how farmers access resources and make decisions.Khelo India – Under Budget 2026-27, the finance minister unveiled the Khelo India Mission to revamp the sports sector over the next decade, focusing on talent identification, coach training, sports science, and modern infrastructure development.About the AuthorTOI Business DeskThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.Read MoreEnd of ArticleFollow Us On Social MediaVideosPM Modi Calls Budget 2026 Historic As Reforms Empower Youth Women And India’s Growth Push’Nothing For Bengal’: Mamata Banerjee Attacks ‘Humpty Dumpty’ Union Budget 2026 As Markets TumbleIn First Budget Since Sindoor, FM Sends Signal On Security As Defence Outlay Jumps To ₹7.85L CroreTax Holidays, Safe Harbour, Incentives: Budget 2026 Pushes Investment In India, Boosts IT SectorBudget 2026 Brings New Income Tax Act From April With No Slab Change But Major Compliance ResetSubsidies, Jobs, AI Tool: FM Sitharaman Unveils Big Budget Boost For Agri Sector To Help FarmersMental Health Takes Priority In Budget 2026, FM Sitharaman Announces NIMHANS 2 For North IndiaBudget 2026: Individual Investment Limit For Overseas Residents Doubled To 10%, Sitharaman AnnouncesBudget 2026 Signals Infra First Strategy With Public Capital Expenditure Raised To ₹12.2 Lakh CroreBudget 2026 Targets Tariff Risks As FM Nirmala Sitharaman Rolls Out ₹10,000 Crore Lifeline For MSMEs123PhotostoriesUnion Budget 2026: 6 nuts that got attention of the government and whyNo one Killed Jessica’, ‘Mrs. Chatterjee vs Norway’, ‘Veer-Zaara’: 5 fearless roles that prove Rani Mukerji is Bollywood’s ultimate Mardani!Union Budget 2026: From coconut to chocolate, things which have got attention in this year’s budget and whyTaylor Swift’s 7 most expensive possessionsCJ Roy death case: What remains unclear as the probe continues7 most memorable Grammy moments to rewind before the 2026 awardsBudget-friendly destinations in 2026: 8 Indian places that should be on every traveller’s wish list this yearBudget 2026: Nirmala Sitharaman wears a purple saree rooted in the 1,400-year-old weaving legacy of the Pallava dynastyUnion Budget 2026: 7 high-speed rail corridors announced, including Mumbai-Pune, Hyderabad-Bengaluru; check full listNavi Mumbai airport goes 24/7: Inside the quiet shift to round-the-clock ops123Hot PicksBudget highlights 2026Budget Income Tax SlabUnion Budget 2026February 2026 bank changesIncome Tax CalculatorPublic holidays February 2026Bank Holidays februaryTop TrendingNirmala Sitharaman SareeMany Pacquiao vs Conor Height DifferenceBengaluru Worker Dead NewsMLB Trade RumorsDwyane Wade WifeSnowboarder Ryan Wedding CaseUnion Budget Speech LiveStock Market BudgetUnion Budget SpeechGold Silver Rate Today
NEW DELHI: Union finance minister Nirmala Sitharaman on Sunday delivered a 1 hour 25 minute presentation of the Union Budget 2026-27, marking her record ninth consecutive budget. She made several major announcements covering income tax, defence, railways, MSMEs, healthcare, and more.The budget was hailed as “historic” by Prime Minister Narendra Modi, who described it as a “high flight toward Viksit Bharat” by 2047, shortly after FM Sitharaman’s presentation in the Lok Sabha.
Here are the 10 big announcements from Union Budget 2026
- Defence – The Union Budget 2026 has allocated Rs 7.85 lakh crore to the Defence Ministry, up from Rs 6.81 lakh crore last year. Out of this, Rs 2.19 lakh crore will go toward modernising the armed forces, including Rs 63,733 crore for aircraft and engines and Rs 25,023 crore for the Navy. The remaining Rs 5.54 lakh crore will cover running expenses, including Rs 1.71 lakh crore for pensions.
- Railways – The FM Sitharaman proposed seven high-speed rail corridors connecting major cities—Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi, and Varanasi-Siliguri—to promote an environmentally sustainable passenger system. The Railways has been allocated a strong capital expenditure of Rs 2,93,030 crore to boost infrastructure-driven growth and fast-track the vision of Viksit Bharat. She also announced a new dedicated freight corridor linking Dankuni in West Bengal to Surat in Gujarat to ensure efficient and eco-friendly movement of goods across the country.
- Income Tax – Sitharaman announced that the Income Tax Act, 2025 will come into effect from April 1, replacing the six-decade-old tax law. The new law simplifies rules and forms, making compliance easier for taxpayers, and is revenue neutral with no change in tax rates. It cuts sections by about 50%, removes ambiguities, replaces the assessment year with a single “tax year,” and allows TDS refunds even if ITRs are filed late without penalties.
- Rare-earth – The Budget proposed supporting mineral-rich states like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu in setting up dedicated rare earth corridors. This builds on the ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’ launched in November 2025, which has a financial outlay of Rs 7,280 crore. The scheme aims to create 6,000 metric tonnes per year of integrated REPM manufacturing capacity in India, covering the complete production chain from rare-earth oxides to finished magnets.
- Health – The Union health ministry has been allocated Rs 1,06,530.42 crore in Budget 2026-27, a 10% increase from last year, according to news agency PTI. FM Sitharaman announced a scheme to set up five regional medical hubs with private-sector support to boost medical tourism. Existing allied healthcare institutions will be upgraded, and new ones established, training 1 lakh professionals across 10 disciplines over the next five years. A Rs 10,000 crore investment proposed over the next five years to make India a
biopharma manufacturing hub , establish 1,000 clinical trial sites, and strengthen the Central Drugs Standard Control Organisation.
- Boost to MSMEs – The minister proposed a three-pronged strategy to boost MSMEs, including a dedicated Rs 10,000 crore fund to help them grow as ‘Champions’. In her Budget speech, she said the Modi government’s reforms aim to create jobs, increase productivity, and accelerate growth. She outlined “three kartavyas”: accelerate and sustain economic growth, fulfil aspirations and build capacity, and Sabka Sath, Sabka Vikas. Under the first, she highlighted six interventions, including support for Champion MSMEs.
- Education – It also included boost to education with a National Institute of Design in eastern India, five university townships near industrial corridors, and a girls’ hostel in every district for STEM students. Four telescope facilities for astrophysics research will be set up, and a high-powered ‘Education to Employment and Enterprise Committee’ will align skills with jobs and emerging technologies like AI. Under ‘Orange Economy’, FM also proposed content creator labs in schools and colleges to create ‘future-ready jobs’.
- Banking – A “High Level Committee on Banking for Viksit Bharat” was proposed to review the sector and align it with India’s next phase of growth. She said the committee will focus on financial stability, inclusion, and consumer protection. Highlighting the strength of India’s banking sector, she noted strong balance sheets, record profitability, improved asset quality, and coverage of over 98 per cent of villages.
- Agriculture – The Budget also outlined major reform for the agriculture sector, the FM announced announced the launch of ‘Bharat Vistar’ a multilingual AI tool set to integrate AgriStack portals and ICAR’s agricultural practices with advanced AI systems, transforming how farmers access resources and make decisions.
- Khelo India – Under Budget 2026-27, the finance minister unveiled the
Khelo India Mission to revamp the sports sector over the next decade, focusing on talent identification, coach training, sports science, and modern infrastructure development.