Budget Highlights 2026: No Change in Tax Slabs, High-Speed Rail & More
Union Budget 2026–27 focuses on infrastructure, Make in India, disability inclusion, the Orange Economy and wildlife conservation, with transport spending surpassing defence.
The Union Budget 2026–27 was presented in the Lok Sabha on 1 February 2026 by Finance Minister Nirmala Sitharaman. This was her ninth Union Budget. The total size of the budget is about ?53.5 lakh crore, making it one of the largest budgets in India’s history.
The Finance Minister announced that the basic income tax slabs remain mostly unchanged under both the old and new tax regimes. However, some relief was provided through tax-related measures. The government reduced Tax Collected at Source on money spent for education and medical treatment abroad. Taxpayers were also given more time to file their income tax returns, offering ease and flexibility.
In a major shift, transport received the highest allocation this year, overtaking defence spending. The transport sector, including railways and roads, was allocated around ?5.98 lakh crore, while defence received about ?5.94 lakh crore. The government also proposed seven new high-speed rail corridors to connect major cities, which is expected to reduce travel time and support business and tourism.
The budget strongly focused on Make in India and boosting domestic manufacturing. The government aims to promote the production of items such as semiconductors, electronics, medicines, textiles, and critical minerals within the country. Small and Medium Enterprises received strong support through a ?10,000 crore SME Growth Fund, along with easier access to loans and digital payment systems. These steps are expected to create jobs, bring new technology, and reduce dependence on imports.
Special attention was given to persons with disabilities under Divyangjan-focused schemes. The Department of Empowerment of Persons with Disabilities was allocated around ?1,580 crore this year, compared to ?1,275 crore last year. Around ?300 crore has been set aside for new disability inclusion programmes related to skill development, assistive technology, and inclusive education. Two new schemes were announced, Divyangjan Kaushal Yojana for skill training and Divyang Sahara Yojana for providing better assistive devices and technology.
For the first time, the government officially recognised the Orange Economy as a key part of India’s economic growth. This sector includes animation, visual effects, gaming, comics, digital content creation, media, and design. The budget announced special funding to develop creative skills and infrastructure across the country.
As part of this plan, the government will support the Indian Institute of Creative Technologies in Mumbai. AVGC creator labs will be set up in 15,000 secondary schools and 500 colleges to encourage creativity and skill development among students.
The budget also highlighted India’s leadership in environmental protection and wildlife conservation. Finance Minister Sitharaman announced that India will host the first Global Big Cat Summit in 2026. The summit will focus on protecting big cats such as tigers, lions, leopards, snow leopards, cheetahs, jaguars, and pumas.
Leaders and ministers from around 95 countries where these animals are found are expected to attend the summit. They will discuss joint strategies to protect wildlife and natural habitats. This move strengthens India’s global role in conservation, building on successful initiatives like Project Tiger and international efforts to fight poaching and illegal wildlife trade.
