Budget 2026 Overview
The Union Budget 2026 is slated to be presented on February 1st. It's an occasion of significant interest and anticipation within the Indian economy. The budget
process involves several key steps. The Finance Ministry officials play a crucial role, working diligently to prepare for the ninth budget by Nirmala Sitharaman. The budget's structure and the crucial FAQs surrounding it will be detailed.
Taxation and Reforms
Tax experts and industry leaders are anticipating substantial changes in the upcoming budget, particularly concerning taxation. There's a strong push for higher tax deductions and relief within the 30% tax slab. The new tax regime may potentially incorporate deductions for home loans and health insurance. There's also speculation about the potential for joint tax filing for married couples. Experts are aiming for tax clarity and a faster resolution of disputes to enhance the ease of doing business. The possibility of the old tax regime being phased out is another point of discussion, with implications for taxpayers.
Infrastructure and Spending
The Union Budget 2026 is expected to focus significantly on infrastructure development. Industry leaders have urged the government to double infrastructure spending, potentially reaching Rs 3 lakh crore. This increased investment aims to stimulate economic growth and improve connectivity. Morgan Stanley has highlighted the necessity of key reforms across several sectors including auto, telecom, railways and defense. These reforms are seen as crucial for supporting long-term economic expansion and enhancing India's global competitiveness.
Trade and Exports
The government is aiming for significant growth in exports. Reports suggest a plan to triple exports by 2035 through manufacturing-led reforms. The India-EU Free Trade Agreement is also expected to play a crucial role in boosting trade, with potential tariff cuts on over 90% of goods. This could make products like wine and chocolate more affordable for Indian consumers. Experts are also recommending stocks to consider for long-term investments based on the trade deal. The CII anticipates that the trade pact will boost competitiveness of Indian exports in the EU market.
Economic Indicators
India has maintained its position as the fastest-growing major economy, despite global economic slowdowns, as reported by the IMF. The Economic Survey 2026 is scheduled to be tabled on Thursday, providing an overview of the economy's performance and future outlook. Key factors influencing the stock market's performance, such as the Sensex and Nifty, are closely monitored. The RBI has launched an Integrated Ombudsman Scheme 2026, with grievance redressal going live from July 1st, showing efforts to improve financial consumer protection. The goal is to provide a more streamlined environment for businesses.
Other Expectations
Budget 2026 may bring changes in the tax regime. The specifics of the new regime may include home loan and health insurance deductions. Some industry experts are also discussing the possibility of making it more attractive for taxpayers. The government's moves related to wage and pension revisions for employees of RBI, PSGICs, and NABARD are under focus. Overall, the budget is anticipated to address multiple aspects of the economy, aiming for growth and stability.
