Budget 2026: Top 10 Announcements from Union Budget 2026 and What it Means?

One number sets the tone for Budget 2026-27: a fiscal deficit target of 4.3% of GDP. Add ₹12.2 lakh crore of public capex, a sharper push for manufacturing, and a clutch of tax changes that will show up in trading costs, buybacks, and overseas spends and you have a Budget that is trying to look both growth-forward and financially disciplined.

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Here are the 10 key announcements, explained with the relevant numbers and what they mean for readers.

1) Fiscal deficit is budgeted at 4.3% — and the debt ratio is nudged lower

The government pegs the fiscal deficit at 4.3% of GDP (BE 2026-27), compared with 4.4% (RE 2025-26). It also estimates debt-to-GDP at 55.6% in BE 2026-27 versus 56.1% in RE 2025-26.
What it means: For markets, this is the “credibility anchor”. Lower deficit and a declining debt ratio usually aim to keep borrowing costs in check and preserve room for future spending without unsettling bond markets.

2) The Budget’s core numbers: receipts, spending, and borrowing

For FY 2026-27, the speech lists:

• Non-debt receipts: ₹36.5 lakh crore
• Total expenditure: ₹53.5 lakh crore
• Net tax receipts: ₹28.7 lakh crore
• Net market borrowings: ₹11.7 lakh crore
• Gross market borrowings: ₹17.2 lakh crore

For FY 2025-26 (RE), it states:

• Non-debt receipts: ₹34 lakh crore
• Net tax receipts: ₹26.7 lakh crore
• Total expenditure: ₹49.6 lakh crore
• Capital expenditure: about ₹11 lakh crore

The statistics contain numerical data which shows borrowing activities from the year together with capital expenditure funding options and Budget tax revenue prediction results.

3) Big-ticket infrastructure: public capex raised to ₹12.2 lakh crore

Public capex has been stepped up over the decade, and the Union Budget 2026 proposes to raise it to ₹12.2 lakh crore in FY 2026-27. Public capex has increased manifold from ₹2 lakh crore in FY2014-15 an allocation of ₹11.2 lakh crore in BE 2025-26.

What it means: For the real economy, this is still the main demand engine; especially for roads, rail, freight corridors, construction-linked manufacturing, capital goods, logistics, and EPC.

4) A new infra backstop: Infrastructure Risk Guarantee Fund + CPSE REITs

Two moves sit alongside the capex number:

• An Infrastructure Risk Guarantee Fund is proposed to provide prudently calibrated partial credit guarantees to lenders during the development and construction phase.
• The Budget proposes dedicated REITs for CPSE real estate assets to accelerate asset recycling/monetisation.

What it means: The risk guarantee fund is meant to lower lender anxiety in the riskiest stage of infra projects. CPSE REITs are aimed at unlocking value from government-owned real estate and recycling capital back into productive spending.

5) City Economic Regions: ₹5,000 crore per region over five years

The Budget proposes mapping City Economic Regions (CERs) based on growth drivers, with an allocation of ₹5,000 crore per CER over five years, implemented via a challenge mode and a reform-cum-results based financing approach.

What it means: This is a “delivery” idea — less about launching a new scheme name, more about forcing measurable outcomes in Tier II/Tier III urban infrastructure and local growth clusters.

6) Seven High-Speed Rail corridors pitched as “growth connectors”

The Budget proposes seven High-Speed Rail corridors:

• Mumbai–Pune
• Pune–Hyderabad
• Hyderabad–Bengaluru
• Hyderabad–Chennai
• Chennai–Bengaluru
• Delhi–Varanasi
• Varanasi–Siliguri

What it means: These are long-gestation projects, but the intent is clear: connect large economic hubs faster and build new commuter/business corridors over time.

7) Electronics manufacturing: outlay lifted to ₹40,000 crore

The Electronics Components Manufacturing Scheme, launched in April 2025 with an outlay of ₹22,919 crore, is proposed to be expanded to ₹40,000 crore.
What it means: The Budget is signalling it wants deeper value addition; components and supply chain capacity; not just final assembly.

8) Biopharma SHAKTI: ₹10,000 crore, plus trial and education infrastructure

Under Biopharma SHAKTI, the Budget proposes an outlay of ₹10,000 crore over five years to build a biologics/biosimilars ecosystem. It also speaks of:

• 3 new NIPERs and upgrading 7 existing ones
• a network of over 1,000 accredited clinical trial sites
• What it means: This is an attempt to move India up the pharma value chain; from scale-led manufacturing towards innovation, trials, and higher-complexity products.

9) Container manufacturing: ₹10,000 crore over five years

To create a globally competitive container ecosystem, a Container Manufacturing Scheme is proposed with a budgetary allocation of ₹10,000 crore over five years.

What it means: Containers are unglamorous, but they are core trade infrastructure. Domestic capacity can reduce dependence, improve availability, and support export logistics.

10) Tax and market changes readers will notice: LRS, buybacks, STT, and MAT

This is the section that will likely trigger the most “how does this affect me?” questions.

A) A new Income Tax Act from 1 April 2026

The speech states that the Income Tax Act, 2025 will come into effect from April 1, 2026.
It also proposes enabling depositories to accept Form 15G/15H from investors and pass it on to relevant companies; a practical ease-of-compliance move.

B) LRS and overseas tour packages: TCS reduced to 2%

TCS on overseas tour programme packages is proposed to be reduced to 2%.
TCS under LRS for education and medical purposes is proposed to be reduced from 5% to 2%.

C) Buybacks: taxed as capital gains; promoters pay an additional buyback tax

The Budget proposes to tax buybacks for all shareholders as Capital Gains, while promoters will pay an additional buyback tax resulting in an effective tax of 22% for corporate promoters and 30% for non-corporate promoters.

D) F&O trading costs: STT is raised

It proposes raising STT on futures to 0.05% (from 0.02%) and STT on options premium and exercise to 0.15%.

E) MAT: proposed as a final tax at 14%

MAT is proposed to be made a final tax, with no further credit accumulation from 1 April 2026, and the rate reduced to 14% from 15%.

What it means:

• Overseas spends and certain remittances get immediate relief via lower TCS.
• Buybacks become less “tax-arbitrage friendly” for promoters.
• Derivatives trading gets marginally costlier through STT.
• Corporate tax planning changes if MAT becomes a final tax with a lower rate and limited credit mechanics.

Conclusion

Budget 2026-27 reads like a “two-track” plan: tighten the fiscal glide path (4.3%), keep the capex engine running (₹12.2 lakh crore), and pair that with targeted manufacturing bets (electronics, biopharma, containers), while also changing the tax plumbing that affects investors and households (LRS/TCS, buybacks, STT, MAT).