Union Finance Minister Nirmala Sitharaman delivered her ninth Union Budget on February 1 which showed how the government planned to maintain economic growth during worldwide economic uncertainty. Sitharaman presented the Budget under Prime Minister Narendra Modi’s leadership because the government wanted to Provide the economy with a push that would sustain its current growth pace.

The income tax payers felt disappointed because the government did not introduce any new tax deductions and did not modify the existing standard deduction. The equity markets moved sharply during the Budget speech because the Sensex and Nifty indexes fell deeply into negative territory while investors showed caution about upcoming policy announcements and government spending decisions.

Three ‘Kartavyas’ Guiding Budget 2026

The Finance Minister mentioned that Union Budget 2026 was actually inspired by three core kartavyas (responsibilities).

• Accelerating and sustaining economic growth by boosting competitiveness
• Fulfilling aspirations through jobs, skills and innovation
• Ensuring inclusive access so every family, community and region can participate in development

Key Announcements and Themes

• Fiscal discipline: Fiscal deficit projected at 4.3%, reinforcing the government’s commitment to consolidation.
• Capital expenditure: Capex at the highest level in a decade, with focus on infrastructure, logistics and regional connectivity.
• Manufacturing push: New initiatives across biopharma, semiconductors, electronics, textiles, capital goods and rare earth corridors.
• Defence outlay: Record hike, with the overall defence budget rising to ₹7.85 lakh crore, including higher allocations for modernisation and pensions.
• Education and youth: Five university townships near industrial corridors and one girls’ hostel per district announced.
• Women-led enterprises: Proposal to set up SHE Marts to improve market access for rural women entrepreneurs.
• Divyangjan empowerment: Support for ALIMCO to scale up artificial limb production and skill development under the Divyangjan Kaushal Yojana.
• Clean energy & sustainability: Push for bio-gas blending in CNG and duty exemptions for clean energy and critical minerals.

Mixed Political and Market Reactions

The Prime Minister Narendra Modi defined the Budget as a balanced method which brought together two elements because it included high capital expenditure and high economic growth which created a stable foundation for Viksit Bharat 2047. The West Bengal Chief Minister Mamata Banerjee described the budget as a “Humpty Dumpty Budget” because she claimed that the government paid no attention to states preparing for elections.

The 2026 government budget will demonstrate its capacity to generate economic growth and create job opportunities while maintaining stability through its planned extensive reforms. The future effects of government decisions will be evaluated by markets together with taxpayers.