The Union Budget 2026–27 was presented on 1 February 2026 by Finance Minister Nirmala Sitharaman, with the Budget speech lasting around 95 minutes in Parliament.
Several items got cheaper, including personal-use imported goods, select cancer and rare-disease medicines, overseas tour packages, foreign education remittances, and key manufacturing inputs such as lithium-ion cells and aircraft components.
On the costlier side, stock market futures and options trading will now attract higher taxes, while alcohol may see higher compliance-related costs.
The Union Budget for FY 2026–27 was presented in Parliament by Nirmala Sitharaman on 1st February 2026, marking the first Budget prepared at Kartavya Bhawan. Described as a Yuva Shakti–driven Budget, it is anchored around the Government’s Sankalp to support the poor, underprivileged, and disadvantaged, while accelerating India’s journey towards Viksit Bharat. Several commodities have become cheaper, whereas some prices are going to go up.
Budget Philosophy: The Three Kartavya
The Budget is guided by three core responsibilities:
Accelerate and sustain economic growth
Fulfil aspirations and build capacity
Inclusive development (Sabka Sath, Sabka Vikas)
Focus on productivity, competitiveness, infrastructure, and resilience amid global volatility.
Investments in education, skilling, healthcare, tourism, sports, and creative industries.
Targeted support for farmers, MSMEs, women, Divyangjan, mental health, North-East, and Purvodaya States.
What the Government Is Spending More On (Good News Areas)?
1. Jobs, MSMEs & Manufacturing
More support for small businesses (MSMEs)
Boost for medicines and biotech
Textiles and handlooms get help
A new ₹10,000 crore fund will help promising MSMEs grow faster, create jobs, and expand exports.
₹10,000 crore has been set aside to make advanced medicines (like cancer drugs and biosimilars) in India, which can reduce long-term healthcare costs.
Traditional clusters, handloom workers, and textile units will get support for modern machines, better skills, and sustainable production.
What it means for you: More jobs, stronger small businesses, and better availability of Indian-made products.
2. Infrastructure & Transport
Big jump in government spending
Seven new high-speed train corridors
Better freight and waterways
Government spending on roads, railways, ports and infrastructure has gone up to ₹12.2 lakh crore.
Faster travel between major cities like Mumbai–Pune, Bengaluru–Chennai, and Delhi–Varanasi.
New freight corridors and national waterways aim to make the transport of goods cheaper.
What it means for you: Faster travel, better connectivity, and lower logistics costs (which can reduce prices over time).
3. Education, Youth & Skills
Creative and gaming careers get a push
More support for girls in STEM
Tourism and sports jobs
Animation, VFX and gaming labs will come to 15,000 schools and 500 colleges.
Every district will get a girls’ hostel for higher education in science and engineering.
10,000 tourist guides will be trained, and the Khelo India Mission will expand sports careers.
What it means for you: More career options beyond traditional jobs, especially for youth and women.
4. Farmers, Rural India & Social Support
AI help for farmers
Support for women-led groups
Mental health gets priority
A new multilingual AI tool will give farmers crop advice, weather inputs, and risk alerts.
Self-Help Groups will get their own local markets (SHE Marts).
New and upgraded mental health institutes across regions.
What it means for you: Better rural livelihoods, stronger community income, and improved access to mental healthcare.
What Gets Cheaper for Individuals?
Overseas travel TCS reduced
Education & medical remittances are cheaper
Imported personal goods are cheaper
Some medicines become cheaper
Tax collected on foreign tour packages has been cut to 2%, making international travel slightly cheaper.
TCS for sending money abroad for studies or medical treatment has been reduced to 2%.
Customs duty on personal imports reduced from 20% to 10%.
Customs duty removed on 17 essential drugs and more rare disease treatments.
What May Cost More?
Tax on Alcohol and Cigarettes (Sin Goods)
Stock market futures trading gets costlier
Options trading is also slightly more expensive
Taxes on alcohol and cigarettes are imposed to discourage harmful consumption while generating revenue to support public health programs.
Securities Transaction Tax (STT) on futures has been increased.
Higher STT on options premiums and exercise.
Who it affects: Active traders and investors (not long-term savers).
Big Changes in Income Tax (From April 2026)
New Income Tax Act kicks in
Less harassment, fewer cases
Easier corrections
Small foreign asset disclosures
Income tax rules will be simpler, with redesigned forms.
Assessment and penalty proceedings will be combined.
More time to revise returns and easier ways to fix mistakes.
One-time chance for students and young professionals to disclose small overseas assets without harsh penalties.
What it means for you: Less confusion, fewer notices, and simpler compliance.
Benefits for Businesses & Startups
IT companies get clarity
Global companies encouraged to invest
Faster customs clearance
One standard tax margin and higher eligibility limits.
Foreign cloud service providers using Indian data centres get tax relief till 2047.
One digital window and AI-based scanning to reduce delays.
Government Finances in FY 2026–27
Fiscal deficit
Debt level
Total spending
Tax collections
4.3% of GDP (controlled spending)
Slowly reducing
₹53.5 lakh crore
₹28.7 lakh crore
What This Budget Does?
The Budget for the Financial Year 26-27 focuses on jobs, infrastructure, youth, easier taxes, cheaper imports, and long-term growth, while slightly increasing costs for market speculation.
Source - Press Release by Ministry of Finance
Disclaimer: The details in this article are for informational purposes only. To know the exact details of the budget, refer to the press release or official website of Budget 2026.
FAQs on Union Budget 2026-27
What does “items getting cheaper” actually mean in the Budget?
When the Budget says an item gets cheaper, it usually means lower taxes, customs duty, or TCS. Actual retail prices may reduce over time, depending on companies passing on the benefit.
Will imported goods for personal use really become cheaper?
Yes. Customs duty on personal-use imported goods has been reduced from 20% to 10%, which lowers the overall cost for travellers and individual importers.
Which medicines are expected to become more affordable?
The government has removed customs duty on 17 essential drugs, including cancer medicines, and on drugs, medicines, and Food for Special Medical Purposes (FSMP) used to treat 7 rare diseases.
Is foreign travel cheaper after Budget 2026–27?
Yes, slightly. The TCS on overseas tour packages has been reduced to 2%, which lowers the upfront amount paid while booking foreign travel.
Has foreign education become cheaper?
Yes. TCS on money sent abroad for education and medical treatment has been reduced to 2%, easing the immediate financial burden on students and families.
Are leather, textile and seafood products cheaper for consumers?
The relief is mainly for export-oriented manufacturing inputs, not direct retail products. Over time, this can improve competitiveness and pricing, but immediate consumer price drops are not guaranteed.
Which items or activities are expected to become costlier?
The Budget increases costs for stock market futures and options trading through higher Securities Transaction Tax (STT). This mainly affects active traders, not long-term investors.
Are alcohol, cigarettes and minerals more expensive after the Budget?
Yes, taxes on these goods have risen.
