Sun Feb 01 07:43:34 UTC 2026: ### Sitharaman Presents Union Budget 2026-27, Focuses on Growth and Infrastructure

The Story:
Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in the Lok Sabha on February 1, 2026, marking her ninth consecutive budget presentation and the first ever presented on a Sunday in independent India. The budget retains the states’ share in the common pool of taxes at 41% for the 2026-31 period, as recommended by the 16th Finance Commission. The Economic Survey 2025-26, authored by Chief Economic Advisor V. Anantha Nageswaran, projects a medium-term growth outlook of 7%, up from the previous estimate of 6.5%.

Key Points:

  • Nirmala Sitharaman presented the Union Budget 2026-27 on February 1, 2026.
  • States’ share in the common pool of taxes remains at 41% for 2026-31.
  • The Economic Survey 2025-26 projects a medium-term growth outlook of 7%.
  • The Survey estimates 7.4% growth for the financial year 2025-26 and a growth rate range of 6.8-7.2% for 2026-27.
  • The budget emphasizes tourism, infrastructure, MSMEs, and the small-scale sector.
  • Congress criticized the budget as “lacklustre” and lacking transparency in program allocations.
  • Government plans tax holiday for foreign firms using Indian data centers for Cloud Services.
  • Three of seven high-speed rail corridors to connect Hyderabad.
  • India set to host first ever Global Big Cat summit.

Key Takeaways:

  • The Union Budget 2026-27 aims to build on the economic progress of the past decade, focusing on key sectors for growth.
  • Maintaining the states’ share of taxes at 41% signals fiscal stability and cooperative federalism.
  • The budget includes forward-looking initiatives like tax holidays for foreign cloud service providers using Indian data centers.
  • There is political divide regarding the merit of the budget, with the ruling party praising it and the opposition criticizing it.
  • Initiatives such as high-speed rail and hosting the Global Big Cat Summit show a focus on infrastructure development and global leadership respectively.

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