Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in the Lok Sabha on 1 February 2026. Notably, it was a Sunday, and it was her ninth consecutive Budget. The government puts total expenditure at Rs 53,47,315 crore for 2026-27. Moreover, public capital expenditure rises to Rs 12.2 lakh crore from Rs 11.2 lakh crore. The Budget also targets a fiscal deficit of 4.3% of GDP. So, it pairs higher public investment with steady fiscal consolidation.
Expenditure and Receipts at a Glance
According to PRS, total expenditure is 7.7% higher than the 2025-26 revised estimates. Revenue expenditure stands at Rs 41,25,494 crore. Meanwhile, capital expenditure is Rs 12,21,821 crore. On the receipts side, non-debt receipts total Rs 36,51,547 crore.
Fiscal Deficit and Debt Targets
The fiscal deficit falls to 4.3% of GDP from 4.4% in 2025-26 (RE). Further, the debt-to-GDP ratio eases to 55.6% from 56.1%. Also, the government aims to bring debt to about 50% of GDP by March 2031.
Three Kartavyas and Key Announcements
The Budget rests on three “Kartavyas”, or duties. First, it aims to “accelerate and sustain economic growth”. Second, it seeks to “fulfil aspirations of people and build their capacity”. Third, it follows Sabka Sath, Sabka Vikas for wider access to resources. Among the big moves, it launches India Semiconductor Mission 2.0. Besides, it proposes seven high-speed rail corridors and Rare Earth Corridors in four states.
Tax Measures and Transfers to States
Notably, income tax slabs remain unchanged. Also, the new Income Tax Act, 2025 takes effect from April 2026. For states, tax devolution stands at Rs 15,26,255 crore. In addition, they get Rs 1.4 lakh crore in Finance Commission grants.
About the Union Budget
Article 112 of the Constitution calls the Budget the Annual Financial Statement. Since 2017, the government has presented it on 1 February. Also, the 2017 reform merged the Railway Budget with the Union Budget.
Union Budget 2026-27: Key Facts for Revision
- Presented by: FM Nirmala Sitharaman on 1 February 2026 (ninth in a row)
- Total expenditure: Rs 53,47,315 crore
- Capital expenditure: Rs 12,21,821 crore
- Fiscal deficit: 4.3% of GDP (Rs 16,95,768 crore)
- Debt-to-GDP: 55.6%; target of about 50% by March 2031
- Theme: Three Kartavyas
Why Union Budget 2026-27 Matters for UPSC and UKPSC
Notably, Budget numbers and new schemes appear every year in prelims and mains. So, remember the outlay, the capex figure and the fiscal deficit target. Also, link the Budget with the 41% devolution under the Finance Commission. For official updates, also visit India Budget. Next, for a related story, read about the 16th Finance Commission recommendations. Then, see our note on Semicon 2.0 and the India Semiconductor Mission.
So, are you preparing for the UKPSC Upper PCS 2026 prelims? Then join our UKPSC 2026 Prelims Test Series for regular practice.