New Delhi: The Union Finance Minister Presented Budget for the financial year of 2026-27 on Sunday. The minister presented a balance between “hard” infrastructure
and “soft” social engineering. The government signaled a dual-track strategy, aggressive capital expenditure coupled with a radical strengthening of the social sector to boost employment and investment efficiency.
From the defence sector to agriculture sector, here is the comprehensive breakdown of the major announcements.
A Rs 7.85 lakh crore defence fortress
In a clear signal of non-negotiable national security, the government has significantly hiked the defence budget to Rs 7.85 lakh crore for FY 2026-27. This is a substantial jump from the Rs 6.81 lakh crore allocated in the previous fiscal.The funds are earmarked for modernising military hardware, ensuring operational readiness, and securing the welfare of personnel through pensions and civil establishment support.
A massive portion, Rs 3.12 lakh crore, remains dedicated to salaries, maintenance, and the immediate operational needs of the services.
Highways as growth engines
The Ministry of Road Transport and Highways (MoRTH) continue its streak as the government’s favorite infrastructure arm. Budgetary support for roads has nearly tripled since FY21.
The Numbers: Moving from ₹99,159 crore in 2021, the new outlay for FY26 stands at a staggering ₹2,87,333 crore. By treating highways as the “central pillar” of capital expenditure, the government aims to lower logistics costs and accelerate industrial connectivity.
Branding Indian cashews and sandalwood for the world
The 2026 Budget moves beyond traditional farming, focusing on high-value “allied” sectors to multiply farmer incomes.
Blue economy: 500 reservoirs and “Amrit Sarovars” will be developed to boost fisheries, specifically targeting start-ups and women-led cooperatives.
Global ambitions: The government plans to transform Indian Cashew and Cocoa into premium global brands by 2030.
High-value crops: New initiatives focus on the post-harvest processing of Sandalwood and the expansion of high-density orchards for walnuts, almonds, and pine nuts.
Animal wealth: A loan-linked capital subsidy scheme will modernize veterinary colleges and diagnostic labs to support the livestock economy.
Healthcare 2.0: NIMHANS in the North and the “Care Economy”
In perhaps the most significant social announcement, the government addressed the nation’s “silent crisis” by proposing NIMHANS 2.0. A second campus of the premier mental health institute will be established in North India to bridge regional healthcare gaps.
The Care force: 1.5 lakh multiskilled caregivers will be trained under NSQF-aligned programs to support the elderly and infirm.
Medical tourism: Five “Medical Value Tourism” hubs will be established to attract global patients.
Ayurveda 3.0: Three new All India Institutes of Ayurveda are on the horizon, alongside a strengthened WHO Global Traditional Medicine Centre.
Education & the “Orange Economy”
The Budget re-imagines the link between the classroom and the corporation:
University townships: Five specialised townships will be built near major industrial and logistics corridors to create a “study-to-work” ecosystem.
STEM for girls: To close the gender gap in science and tech, a girls’ hostel will be constructed in higher education STEM institutions in every single district of the country.
E3 committee: A high-powered ‘Education to Employment and Enterprise’ Standing Committee has been formed to ensure the services sector drives the vision of Viksit Bharat.
Ease of business & financial reform
The government signaled a “broad-based push” for governance efficiency, streamlining regulations to make India a more attractive destination for foreign capital. By focusing on “Infrastructure Financing” and “Financial Sector Reforms,” the Budget seeks to create a self-sustaining cycle of investment and job creation.
Key financial measures include:
A High-Level Committee on Banking for Viksit Bharat.
Rs 100 crore incentive for municipal bond issuances exceeding ₹1,000 crore.
Restructuring of PFC and REC.
Review of FEMA (Non-Debt Instruments) Rules.
Introduction of market-making framework and total return swaps in corporate bonds.
Increase in Securities Transaction Tax (STT) on futures and options.
Key measures to ease of doing business
The Budget proposed a series of tax and compliance reforms, including:
Reduction in TCS rates for overseas tour packages, education and medical remittances.
Extension of return revision timelines till March 31 with nominal fees.
Decriminalisation of certain TDS-related offences.
One-time six-month foreign asset disclosure window for small taxpayers.
Exemption from MAT for non-residents paying presumptive tax.
Exemption of basic customs duty on 17 cancer drugs.
Rollout of a Customs Integrated System within two years and a single digital cargo clearance window.
Major expenditure
Among the major expenditure items (in Rs crore):
Transport: 5,98,520
Defence: 5,94,585
Rural Development: 2,73,108
Home Affairs: 2,55,234
Agriculture & Allied Activities: 1,62,671
Education: 1,39,289
Energy: 1,09,029
Health: 1,04,599
