Union Budget 2026: Top 10 highlights you need to know

Nirmala Sitharaman. Pic/PTI

Finance Minister Nirmala Sitharaman on Sunday presented her ninth consecutive Union Budget 2026, placing strong emphasis on reforms, job creation, skills, infrastructure and inclusive growth.

Union Budget 2026 seeks to touch multiple segments of society - from farmers, students and MSMEs to commuters, investors and healthcare professionals - while keeping long-term growth firmly in focus.

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Follow the live updates of Union Budget 2026 with real-time coverage of major announcements, tax reforms, economic priorities and policy decisions

Here are the top 10 takeaways from Union Budget 2026:

1. Capital expenditure raised to Rs 12.2 lakh crore

Keeping growth at the core, the government increased capital expenditure to Rs 12.2 lakh crore for FY27 from Rs 11.2 lakh crore in FY26 - an increase of nearly 9 per cent. The Finance Minister highlighted that public capex has surged from ₹2 lakh crore in 2014-15 to over Rs 11 lakh crore in recent years, reinforcing infrastructure-led growth.

2. Seven high-speed rail corridors announced

To promote faster and greener mobility, seven new high-speed rail corridors were proposed. These include Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Delhi-Varanasi and Varanasi-Siliguri, linking major economic and urban hubs.

3. Boost to corporate and municipal bond markets

The Union Budget 2026 proposed a market-making framework for corporate bonds, including access to funds and derivatives. Large cities issuing municipal bonds worth over Rs 1,000 crore will get incentives of Rs 100 crore, while smaller towns will continue to receive support under AMRUT.

4. Banking reforms for ‘Viksit Bharat'

A high-level committee on banking will be set up to review the entire financial system and suggest reforms aligned with India's next phase of growth, while ensuring financial stability, inclusion and consumer protection.

5. Higher investment limits for NRIs

The investment cap for NRIs was raised from 5 per cent to 10 per cent, while the overall limit increased from 10 per cent to 24 per cent. This move is expected to attract long-term overseas capital and deepen Indian capital markets.

6. Continued focus on fiscal consolidation

The fiscal deficit target for FY27 was pegged at 4.3 per cent of GDP, down from 4.4 per cent in FY26. Net market borrowings are estimated at Rs 11.7 lakh crore, signalling the government's commitment to debt consolidation.

7. Securities Transaction Tax (STT) increased

STT on futures was raised to 0.05 per cent from 0.02 per cent, while STT on options was increased to 0.15 per cent. The move is aimed at improving market discipline and revenue mobilisation.

8. Big push to tourism - medical, heritage and cultural

Budget 2026 proposes five regional medical tourism hubs with AYUSH centres, development of 15 iconic archaeological sites, a National Destination Digital Knowledge Grid, and Buddhist circuit projects in the Northeast.

9. New initiatives for Divyangjan

Two new schemes - Divyangjan Kaushal Yojana and Divyang Sahara Yojana - were announced to support skill development, assistive device manufacturing, R&D and technology integration for persons with disabilities.

10. Khelo India Mission for sports transformation

A decade-long Khelo India Mission was unveiled to strengthen sports infrastructure, talent identification, coaching, and sports science, aiming to transform India's sporting ecosystem.

Overall, Union Budget 2026 reflects a balanced approach - combining fiscal discipline with growth, infrastructure expansion with inclusion, and reforms with long-term economic resilience.