Union Budget 2026-27

Union Budget 2026-27 arrives at a pivotal moment—presented on a historic Sunday, and marking Finance Minister Smt. Nirmala Sitharaman’s ninth consecutive budget, just one short of Shri Morarji Desai’s record. Against the backdrop of what the RBI Governor has termed India’s “Goldilocks Phase”—characterised by robust GDP growth and contained inflation—this Budget charts a course through global uncertainty marked by tariff wars and geopolitical flux.

Anchored in three Kartavyas—enhancing productivity, fulfilling aspirations, and ensuring inclusive access—the Budget is unmistakably a “Yuva Shakti-driven” exercise, recognising India’s demographic dividend as its greatest asset. The Government’s strategic focus on MSMEs stands out, with the ₹10,000 crore SME Growth Fund and the innovative “Corporate Mitras” initiative designed to provide affordable compliance support in Tier II and III cities—a development of particular interest to Chartered Accountants, Company Secretaries, and Management Accountants.

On Direct Taxes, the commitment to early roll-out of simplified Rules and Forms under the Income-tax Act, 2025 is welcome. However, the Finance Bill’s fine print warrants careful attention—it includes significant amendments, some retrospective, relating to JAO/FAO jurisdiction, DIN requirements, and the due date for depositing employees’ PF/ESI contributions. The rationalisation of TDS/TCS provisions and reduction of MAT from 15% to 14% signal continued simplification efforts.

On Indirect Taxes, with GST 2.0 reforms already underway, the focus shifts to Excise and Customs Duty. The approach is measured: strategic duty recalibration, lighter compliance loads, and practical steps to ease business operations—including a single digital window for cargo clearance.

The Budget maintains fiscal prudence with a deficit target of 4.3% while increasing capital expenditure to ₹12.2 lakh crore. Major allocations include ₹2.27 lakh crore for PM-GKAY, ₹1.87 lakh crore for National Highways, and ₹67,670 crore for Jal Jeevan Mission.

All in all, a Budget that balances growth ambitions with fiscal discipline, continuity with reform, and immediate needs with long-term vision—quietly laying the groundwork for sustained, inclusive economic growth