The Goods and Services Tax (GST) collections reached Rs 1,93,384 crore in the month of January, up 6.2 per cent from the same month last year, official data showed on Sunday. Gross GST collections were Rs 1,82,094 crore in January. On a year-to-date basis (April–January), gross collections jumped to Rs 18,43,423 crore, marking a strong 8.3 per cent growth (on-year), the data showed. Moreover, the net GST revenue for January stood at Rs 1,70,719 crore, up 7.6 per cent from the same month last year. Year-to-date net revenue reached Rs 15,95,752 crore, an annual growth of 6.8 per cent. Domestic GST collections rose 4.8 per cent year-on-year to Rs 1,41,132 crore. Import GST collections remained strong, with gross import revenue at Rs 52,253 crore, up 10.1 per cent from January 2025. The compensation cess, continuing as a transitional measure, dropped to Rs 5,768 crore, down from Rs 13,009 crore last year. Total refunds recorded at Rs 22,665 crore for January, a slight decline of 3.1 per cent year-on-year. State-wise post-settlement GST revenues showed a mixed picture. In December, GST collection recorded a 6.1 per cent increase to Rs 1,74,550 crore compared to Rs 1,64,556 crore in the same month of the previous year, reflecting the increase in economic activity during the month. Central GST collections rose to Rs 34,289 crore, state GST collections to Rs 41,368 crore, and integrated GST collections to Rs 98,894 crore. Meanwhile, the Finance Ministry issued a series of notifications that brought into effect the new tax regime for tobacco products from February 1. The ministry also released an FAQ list to explain that, under the Goods and Services Tax regime, the excise duty on cigarettes had so far been rendered a nominal amount of a "fraction of a paisa" per cigarette stick, and that the GST compensation cess rate on tobacco products had not been increased since it was implemented in July 2017. This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.
01 February,2026 12:22 PM IST | New Delhi | IANSIn a major strategic push to strengthen India’s critical minerals and advanced manufacturing ecosystem, Finance Minister Nirmala Sitharaman on Sunday announced the creation of dedicated rare earth corridors in mineral-rich states including Odisha, Kerala, Andhra Pradesh and Tamil Nadu, as part of the Union Budget 2026. Move aims to build integrated value chains for strategic minerals Presenting her record ninth consecutive Union Budget in Parliament, Sitharaman said the government will actively support these states in building integrated rare earth value chains, recognising their importance in securing supply of critical materials needed for clean energy, electronics, defence and high-tech manufacturing. “We now propose to support mineral-rich states such as Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors,” the Finance Minister said, underlining the government’s focus on reducing import dependence and strengthening domestic capabilities in strategic minerals. Rare earth magnet scheme launched last year gets fresh momentum The announcement builds on steps already taken by the government last year. In November 2025, a scheme for rare earth permanent magnets was launched. Under this, the Centre approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with a financial outlay of Rs 7,280 crore. The scheme aims to create an integrated manufacturing capacity of 6,000 metric tonnes per annum, covering the entire value chain—from rare earth oxides to finished permanent magnets. High-tech tool rooms, infra equipment manufacturing proposed To further expand India’s rare earth and advanced manufacturing capacity, Sitharaman proposed the establishment of high-tech tool rooms by central public sector enterprises at two locations. These facilities will function as digitally enabled automation service bureaus, capable of designing, testing and producing high-precision components locally, at scale and at lower cost. The Finance Minister also announced that a new scheme would be introduced to enhance construction and infrastructure equipment manufacturing, aimed at strengthening domestic production of high-value and technologically advanced construction and infrastructure equipment. Electronics, semiconductors key pillars of advanced manufacturing push In another significant push to the electronics sector, Sitharaman proposed an allocation of Rs 40,000 crore for electronics components manufacturing, signalling the government’s intent to deepen value addition within the country. Highlighting progress in the semiconductor sector, she said India’s Semiconductor Mission 1.0 has significantly expanded the country’s capabilities. Building on that foundation, the government will now roll out Semiconductor Mission 2.0, which will focus on manufacturing equipment and materials, developing full-stack Indian intellectual property, and strengthening semiconductor supply chains. Earlier this week, Sitharaman had tabled the Economic Survey of India for 2025–26 in Parliament. The Survey projects India’s real GDP growth for 2026–27 in the range of 6.8 to 7.2 per cent, reflecting strong medium-term growth potential despite global economic challenges. The Survey also noted that India recorded its lowest inflation rate since the beginning of the CPI series, with average headline inflation at 1.7 per cent during April–December 2025, supported by easing food and fuel prices. The inflation outlook, it said, remains benign due to favourable supply-side conditions and the gradual impact of GST rate rationalisation. Together, the proposed rare earth corridors, semiconductor initiatives and electronics manufacturing push underline the government’s strategy to position India as a global hub for critical minerals and advanced technologies.
01 February,2026 12:14 PM IST | New Delhi | mid-day online correspondentFinance Minister Nirmala Sitharaman on Sunday announced a major push to position India as a global biopharmaceutical hub, unveiling a Rs 10,000-crore outlay over five years under a new Bio Pharma Shakti programme in the Union Budget 2026. Focus on biopharma, biosimilars and high-value manufacturing Presenting the Budget in Parliament, Sitharaman said the initiative is aimed at creating a robust ecosystem for biopharma and biosimilars, strengthening domestic capabilities and boosting India’s global competitiveness in high-value pharmaceutical manufacturing. The programme is expected to support research, innovation, manufacturing scale-up and supply-chain development across the biopharma sector. Union Budget 2026 highlights: Key announcements by FM Nirmala Sitharaman Manufacturing push, city economic regions proposed for growth Alongside this, the Finance Minister proposed measures to expand manufacturing in strategic and frontier sectors, while also announcing plans to develop city economic regions to drive regional growth and job creation. Follow the live updates of Union Budget 2026 with real-time coverage of major announcements, tax reforms, economic priorities and policy decisions Sitharaman highlights decade of stability, reforms and Atmanirbharta In her opening remarks, Sitharaman said India’s economic journey over the past decade has been characterised by stability, fiscal discipline and sustained growth. She underlined that the government led by Prime Minister Narendra Modi has consistently prioritised decisive action and structural reforms, with Atmanirbharta (self-reliance) serving as the guiding principle of policy-making. “Since we assumed office 12 years ago, India’s economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation,” the Finance Minister told the House. She added that going forward, India would continue to balance ambition with inclusion as it pursues long-term development goals. Economic Survey projects strong growth, low inflation outlook The Union Budget 2026–27 marks Sitharaman’s ninth consecutive Budget presentation, a record in itself and a testament to continuity in India’s fiscal leadership. Earlier this week, Sitharaman had tabled the Economic Survey of India for the 2025–26 financial year in Parliament, following the established convention of outlining the state of the economy ahead of the Budget. The Survey provided a detailed, data-driven assessment of economic performance over the past year and offered a broad roadmap for future policy direction. According to the Economic Survey, India’s real GDP growth for 2026–27 is projected to be in the range of 6.8 to 7.2 per cent, reflecting strong medium-term growth potential despite a challenging global environment. The Survey also highlighted that India recorded its lowest inflation rate since the start of the CPI series, with average headline inflation at 1.7 per cent during April–December 2025, driven largely by easing food and fuel prices. The inflation outlook, the Survey noted, remains favourable, supported by strong supply-side conditions and the gradual pass-through of GST rate rationalisation—factors that are expected to provide additional macroeconomic stability in the coming year.
01 February,2026 12:14 PM IST | New Delhi | mid-day online correspondentPresenting the Union Budget 2026 in the Lok Sabha on Sunday, Finance Minister Nirmala Sitharaman said India’s economic journey over the past decade has been defined by stability, decisive governance and sustained reforms under the leadership of Prime Minister Narendra Modi. ‘Action over ambivalence, reform over rhetoric’: FM in Budget speech Rising to deliver her Budget speech, Sitharaman—who is presenting her ninth consecutive Union Budget—said the government has consistently prioritised action over indecision and reforms over rhetoric. “Since we assumed office 12 years ago, India’s economic trajectory has been marked by stability. This government has chosen action over ambivalence and reform over rhetoric. We have undertaken far-reaching structural reforms, ensured fiscal prudence and maintained monetary stability, while keeping a strong focus on public investment,” she told the House. Follow the live updates of Union Budget 2026 with real-time coverage of major announcements, tax reforms, economic priorities and policy decisions India navigating global disruptions, resource competition and tech shifts Highlighting the evolving global landscape, the Finance Minister said India is navigating a challenging external environment where trade systems and multilateral frameworks are under strain, supply chains face disruptions, and access to critical resources is becoming increasingly competitive. She noted that rapid technological transformation is reshaping production systems while sharply increasing pressure on water, energy and critical minerals. “Despite these challenges, India will continue to move forward with confidence towards the goal of Viksit Bharat, balancing ambition with inclusion,” Sitharaman said, emphasising that growth and equity would remain central to the government’s economic strategy. Union Budget 2026 highlights: Key announcements by FM Nirmala Sitharaman FRBM statements tabled, fiscal roadmap outlined As part of the Budget presentation, the Finance Minister also laid two mandatory statements before Parliament under Section 3(1) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. These include the Medium-term Fiscal Policy-cum-Fiscal Policy Strategy Statement and the Macro-Economic Framework Statement, which outline the government’s fiscal roadmap and broader economic outlook. GST reforms, export concerns and record-setting Budget in focus Separately, while presenting the Budget, Sitharaman reiterated that the government has deliberately chosen the path of reforms rather than populist rhetoric. She said India would continue to take steady steps towards becoming a developed nation, or Viksit Bharat, through sustained policy reforms and economic resilience. The Finance Minister also tabled the 16th Finance Commission report in the Lok Sabha, which outlines recommendations on the devolution of tax revenues between the Centre and states for the 2026–2031 period. This Budget brings Sitharaman closer to the long-standing record held by former Prime Minister Morarji Desai, who presented 10 Union Budgets during different tenures. With nine consecutive Budgets since 2019, Sitharaman has already surpassed several predecessors in terms of continuity. The Budget document is also being closely watched for proposed GST reforms, often referred to as ‘GST 2.0’, aimed at simplifying the indirect tax regime through a two-rate structure of 5 per cent and 18 per cent, reducing compliance burdens and lowering the cost of living by cutting rates on essential goods and services. This year’s Budget assumes added significance amid concerns over export growth following the United States’ decision to impose a steep 50 per cent tariff on certain Indian goods, prompting expectations of policy measures to support exporters. Earlier this week, Sitharaman had tabled the Economic Survey of India for 2025–26, which reviews the state of the economy and sets the context for the Budget. The ongoing Budget Session of Parliament will span 30 sittings over 65 days and is scheduled to conclude on April 2. Both Houses will adjourn on February 13 and reconvene on March 9, allowing Standing Committees to examine the Demands for Grants of various ministries and departments.
01 February,2026 12:12 PM IST | New Delhi | mid-day online correspondentFinance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget and bringing her closer to the record of 10 Budgets presented by former Prime Minister Morarji Desai. Speaking during the presentation, Sitharaman said the government is choosing the path of reforms over rhetoric and reaffirmed its commitment to steps aimed at making India a Viksit Bharat. 16th Finance Commission Report Finance Minister Nirmala Sitharaman laid the 16th Finance Commission report during the Union Budget 2026–27 presentation. The report outlines the formula for tax revenue devolution between the Centre and states for 2026–2031. Cesses and surcharges levied by the Centre are excluded from the divisible pool. About the Finance Commission The Finance Commission is a constitutional body set up periodically under the Constitution. It recommends how taxes should be shared between the Centre and the states. Composition of the 16th Finance Commission Chairperson: Former Niti Aayog Vice-Chairman Arvind Panagariya Members: Retired bureaucrat Annie George Mathew Economist Manoj Panda SBI Group Chief Economic Advisor Soumya Kanti Ghosh RBI Deputy Governor T Rabi Sankar Secretary: Ritvik Pandey Constitution Date: December 31, 2023 Report Submission: Submitted to President Droupadi Murmu on November 17, 2025 Government’s focus on the budget Balancing fiscal consolidation with reform-led growth. Strengthening Centre-state financial coordination. Continuing steps toward sustainable development. FM proposes developing 7 high-speed rail corridors between cities as growth connectors • Mumbai – Pune • Pune – Hyderabad • Hyderabad – Bengaluru • Hyderabad – Chennai and more Rare Earth Corridors The FM proposed 'rare earth corridors' for mineral-rich states, including Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. These corridors aim to promote mining, processing, research, and manufacturing of rare earth elements. She highlighted that the Scheme for Rare Earth Permanent Magnets was launched in November 2025. The scheme has a financial outlay of Rs 7,280 crore and plans to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing, enhancing India’s self-reliance and global market positioning. Biopharma Shakti Programme FM Sitharaman announced the Biopharma Shakti programme to boost India’s biopharma sector, with an allocation of Rs 10,000 crore over five years. The initiative targets non-communicable diseases like diabetes and aims to develop India as a global biopharma manufacturing hub. The programme will focus on building an ecosystem for biopharma and biosimilars, fostering innovation and strategic growth in the sector. Strategic and frontier sectors The Finance Minister proposed scaling up manufacturing in strategic and frontier sectors. Emphasis will be placed on developing city economic regions to strengthen regional economies and industrial clusters. Economic outlook and policy direction FM Sitharaman noted that India’s economic trajectory over the past 12 years has been marked by stability, fiscal discipline, sustained growth, and moderate inflation. She stressed the government’s commitment to action over ambivalence, reform over rhetoric, and Atmanirbharta (self-reliance) as a guiding principle. Going forward, India will focus on balancing ambition with inclusion, fostering growth while ensuring equitable development. Municipal bonds FM Nirmala Sitharaman proposed incentives of Rs 100 crore for single bond issuance by municipal corporations with borrowings of more than Rs 1,000 crore. The move aims to strengthen municipal financing and support urban infrastructure development. Public sector financial institutions The Finance Minister announced the restructuring of REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC). These steps are part of the government’s plan to strengthen public sector financial institutions. Banking for Viksit Bharat Sitharaman proposed the setting up of a high-level committee on ‘Banking for Viksit Bharat’. She highlighted that India’s banking sector has a strong balance sheet and is experiencing a historic high profitability. Foreign exchange management The Finance Minister proposed a review of foreign exchange management rules related to non-debt instruments. The move is aimed at streamlining regulations and improving the ease of investment. Poverty reduction Sitharaman noted that close to 25 crore people have come out of multidimensional poverty under government initiatives. This reflects progress in inclusive development and social welfare measures. 7 High-speed Rail Corridors as growth connectors between cities Mumbai to PunePune to HyderabadHyderabad to BengaluruHyderabad to Chennai Chennai to BengaluruDelhi to VaranasiVaranasi to Siliguri (With Agency inputs)
01 February,2026 12:03 PM IST | New DelhiFinance Minister Nirmala Sitharaman on Sunday proposed incentives of Rs 100 crore for single bond issuance by municipal corporations with borrowings exceeding Rs 1,000 crore. The move aims to strengthen urban financing and promote greater investment in local infrastructure. In her ninth consecutive Union Budget, Sitharaman also announced the restructuring of public sector financial institutions, including REC Ltd (formerly Rural Electrification Corporation) and Power Finance Corporation (PFC), as part of efforts to bolster the government’s financial sector framework. She further proposed the formation of a high-level committee on “Banking for Viksit Bharat” to guide reforms in the sector. Highlighting the strength of India’s banking system, the Finance Minister noted its robust balance sheets and historic high profitability. She also proposed a review of foreign exchange management rules concerning non-debt instruments. Sitharaman added that close to 25 crore people have emerged from multi-dimensional poverty, reflecting the impact of sustained reforms and economic growth. Sitharaman termed the government’s reform agenda the “reform express”, asserting that it continues to maintain momentum under the Narendra Modi-led National Democratic Alliance (NDA). “Since we assumed office 12 years ago, the country’s economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation. This is the result of conscious choices made even in times of uncertainty and disruptions,” she said. Emphasising 'Aatmanirbharta (self-reliance)' as a guiding principle, the Finance Minister said the government has strengthened domestic manufacturing capacity, ensured energy security, and reduced critical import dependencies. “Simultaneously, we have undertaken reforms to support employment generation, agricultural productivity, household purchasing power, and universal services. These measures have delivered a high growth rate of around 7 per cent and made substantial strides in poverty reduction,” she added. Union Budget 2026: India to continue to take confident steps towards Viksit Bharat Sitharaman said the government has consistently chosen decisive action over ambivalence, pursuing structural reforms, fiscal prudence, and monetary stability while maintaining a strong thrust on public investment. "Our government has decisively and consistently chosen action over ambivalence, and we have pursued far-reaching structural reforms, fiscal prudence and monetary stability, while maintaining a strong thrust on public investment," Sitharaman added. Referring to global challenges, Sitharaman said India is facing an external environment in which trade and multilateralism are under strain. She emphasised that India will continue to take confident steps towards Viksit Bharat by balancing ambition with inclusion. (With PTI and ANI inputs)
01 February,2026 12:02 PM IST | New Delhi | mid-day online correspondentGold and silver prices continued their sharp decline on Sunday, as investors booked profits post an unprecedented rally over the past year. MCX gold February futures fell 7.12 per cent to Rs 1,39,000 per 10 grams around 10 am on an intraday basis. Meanwhile, MCX silver March futures dipped 9 percent to Rs 2,65,652 per kg. CME Group raised margin requirements on Comex gold and silver futures after the metal prices saw steep declines, which raised investor caution. Further, the US dollar strengthened, and domestic investors expected a customs duty cut in Budget 2026, which fuelled the fall in precious metals. International markets saw spot gold prices heading for their steepest daily fall since 1983, while silver is set for its worst day on record. CME Group said on Friday that margins for gold futures under the non-heightened risk profile will be raised to 8 per cent of the underlying contract value from the current 6 per cent. For positions under the heightened risk profile, the new margins will be 8.8 per cent, up from 6.6 per cent. Higher margins will lead to traders locking more money upfront to hold the same futures position, which reduces speculative interests. Analysts said that MCX Gold futures have witnessed a sharp rejection from the Rs 1,80,000–Rs 1,81,000 zone, followed by an aggressive breakdown, confirming short-term trend exhaustion. However, they maintained that the broader long-term trend of the yellow metal was bullish. The breakdown in MCX silver invalidates the steep bullish channel, and signals panic unwinding of leveraged long positions, they said, adding that momentum indicators have flipped from extreme overbought to oversold within a very short span, highlighting structural instability rather than healthy correction. For silver, a critical support zone lies at Rs 2,60,000-Rs 2,55,000 zone, they said, adding that a pullback toward Rs 3,00,000-Rs 3,10,000 zone is expected to attract selling pressure. The trend remains bearish biased in the short term, with volatility expected to stay elevated, analysts noted. This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.
01 February,2026 11:54 AM IST | Mumbai | IANSA Police Sub-Inspector, Chetan Kumar, attached to the Tumakuru Rural Police Station, was caught red-handed by Lokayukta officials while allegedly accepting a bribe to release a vehicle seized in a case, the Lokayukta said on Saturday. The vehicle belonged to a Bengaluru-based advocate, and the PSI had allegedly demanded a bribe of Rs 5 lakh for its release. On Friday night, at around 11.30 pm, Chetan Kumar was trapped by Lokayukta officials while he was accepting Rs 40,000 as part of the bribe at the Namaste Tumakuru Hotel near Kyathsandra. Following the trap, Lokayukta police interrogated the PSI and later produced him before a court. The accused officer has been booked under Section 7(a) of the Prevention of Corruption Act. Nagesh S.K., a resident of Nagadevanahalli in Bengaluru, has filed a complaint in this regard. According to the Lokayukta, the accused officer had received the bribe amount through an intermediary. The PSI has been taken into custody, and further investigation is underway. A police inspector, posted at Bengaluru's K.P. Agrahara police station, was also caught red-handed by Karnataka Lokayukta officials on Friday while accepting a bribe of Rs 4 lakh to drop a person’s name from a chit fund fraud case. The accused officer has been identified as Inspector Govindaraju. He was trapped while receiving the bribe amount at the CAR Grounds on Mysuru Road. Lokayukta Superintendent of Police Shivaprakash Devaraj said on Friday that the inspector had earlier accepted Rs 1 lakh on January 24 out of the overall demand of a Rs 5 lakh bribe in connection with a case registered under the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019, at the police station. "The accused inspector was caught red-handed while accepting money from the complainant, Akbar, near the Chamarajapete CAR Ground. The bribe was allegedly taken to drop the accused from the case," the SP said. Govindaraju has been arrested under the Prevention of Corruption (PC) Act and sent to judicial custody. Police sources said Inspector Govindaraju allegedly created a scene at the time of his arrest and turned aggressive during the trap operation. A video showing the Inspector creating a ruckus after being caught while accepting the bribe has surfaced. The video shows Lokayukta officials taking him into custody despite his aggressive behaviour. At one point, as many as six Lokayukta officials were seen restraining the Inspector as he became violent. He was heard shouting and creating a dramatic scene. This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.
01 February,2026 11:45 AM IST | Tumakuru (Karnataka) | IANSFinance Minister Nirmala Sitharaman on Sunday said the government has ensured 'Aatmanirbharta (self-reliance)' across sectors despite prevailing geopolitical uncertainties, adding that India’s economic journey has been defined by stability and steady progress towards the goal of Viksit Bharat by 2047. Presenting her ninth consecutive Union Budget, Sitharaman said the focus is on building and accelerating economic growth while fulfilling the aspirations of the people, guided by the principle of “Sabka Saath, Sabka Vikas”. “Our government has decisively and consistently chosen action over ambivalence. We have pursued far-reaching structural reforms, fiscal prudence and monetary stability, while maintaining a strong thrust on public investment,” the Finance Minister said. She noted that India is navigating a challenging global environment where trade and multilateralism are under strain, access to resources and supply chains is disrupted, and rapid technological change is reshaping production systems while increasing pressure on water, energy and critical minerals. “India will continue to take confident steps towards Viksit Bharat by balancing ambition with inclusion,” Sitharaman told the Lok Sabha. The Finance Minister presented the 15th Budget of the Prime Minister Narendra Modi-led government, and the second full Budget since the National Democratic Alliance (NDA) returned to power for a third consecutive term in 2024. Sitharaman is also the first woman finance minister to present the Union Budget in Parliament for nine consecutive times. The Budget is expected to place greater emphasis on capital expenditure, particularly in strategically important sectors in view of current geopolitical challenges. Following the presentation of the Union Budget 2026–27, Sitharaman will interact with around 30 college students from different parts of the country. As part of the initiative, the students are witnessing the live Budget presentation from the Lok Sabha Gallery, giving them an opportunity to observe one of the most significant parliamentary proceedings of the year. The Finance Minister said inputs were sought from citizens, including the youth, through various platforms during the Budget preparation process, and these suggestions will be reflected in the Union Budget 2026–27. Outlay for electronics manufacturing to rise to Rs 40,000 crore in FY27: FM Sitharaman Finance Minister Nirmala Sitharaman on Sunday announced an increase in the allocation for electronics manufacturing to Rs 40,000 crore in the 2026-27 fiscal year. Presenting the Union Budget 2026-27, she said high-tech tool rooms will be set up at two locations to boost capital goods manufacturing. The Finance Minister also unveiled a scheme for container manufacturing aimed at creating a globally competitive ecosystem. In addition, three dedicated chemical parks will be established to strengthen domestic production and reduce import dependence. The announcement comes amid a strong government push to expand electronics manufacturing in India. The mobile manufacturing sector, in particular, has seen remarkable growth, with production value rising nearly 30-fold—from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25. (With IANS and PTI inputs)
01 February,2026 11:35 AM IST | New Delhi | mid-day online correspondentIn her first Budget in 2019, Sitharaman replaced the decades-old leather briefcase with a traditional red ‘bahi-khata’, symbolising a shift in presentation style. Continuing the practice of recent years, the Union Budget 2026–27 will be paperless, marking the fifth consecutive digital Budget. Union Budget 2026: What moment is India in? India heads into Union Budget 2026 at a moment of relative strength—but with limited room for error. The macroeconomic backdrop remains supportive, though increasingly fragile amid global uncertainties. Economic growth is holding firm. The Economic Survey projects real GDP growth of 6.8–7.2 per cent in FY 2026–27, a moderation from the 7.4 per cent estimated for the current year, yet still among the fastest growth rates globally. The government’s fiscal stance remains calibrated. The fiscal deficit stood at 4.8 per cent of GDP in FY25 and is targeted at 4.4 per cent in FY26, even as public investment continues to play a central role in sustaining growth. Capital expenditure remains a key anchor. Budgeted capex for FY26 stands at Rs 11.21 lakh crore, while effective capex—including grants for asset creation—reaches Rs 15.48 lakh crore, reinforcing the government’s infrastructure-led growth strategy. Inflation has eased significantly, averaging 1.7 per cent between April and December 2025, providing policymakers with some headroom. However, external pressures persist, with exports facing global trade frictions, keeping the focus firmly on domestic demand and public investment. While domestic demand remains resilient, global headwinds are intensifying. Rising US tariffs and sluggish global growth have weighed on exports, while private investment continues to remain cautious. As a result, economists expect the government to continue leaning on public spending, particularly in sectors such as roads, ports, energy and defence, even as it remains committed to fiscal consolidation. Capital expenditure is likely to rise further, alongside a gradual lowering of the fiscal deficit target. Here are the key numbers and themes to watch in the Union Budget for FY 2027: Fiscal deficit The budgeted fiscal deficit for the current financial year (FY26: April 2025–March 2026) is estimated at 4.4 per cent of GDP. Having achieved a fiscal consolidation target below 4.5 per cent, markets will look for clarity on the debt-to-GDP reduction roadmap and whether the government provides a specific fiscal deficit target for FY27. Expectations are that the deficit could be pegged at around 4 per cent of GDP. Capital expenditure (Capex) The government’s planned capital expenditure for FY26 stands at Rs 11.2 lakh crore. The upcoming Budget is expected to maintain a strong capex push, with a 10–15 per cent increase likely, even as private sector investment remains cautious. With major pay revisions due only in FY28, the government may have room to raise capex beyond Rs 12 lakh crore. Debt roadmap In the 2024–25 Budget, Sitharaman stated that from FY27 onwards, fiscal policy would aim to place central government debt on a declining path as a percentage of GDP. Markets will closely watch the debt consolidation roadmap and timelines for bringing general government debt-to-GDP down to the 60 per cent target. Currently, the ratio is estimated at over 85 per cent, including around 55 per cent central government debt. Borrowing Gross market borrowing for FY26 was budgeted at Rs 14.80 lakh crore. The FY27 borrowing number will be closely tracked as it signals the government’s fiscal position, revenue mobilisation, and overall borrowing needs. Tax revenue The FY26 Budget pegged gross tax revenues at Rs 42.70 lakh crore, an 11 per cent increase over FY25. This includes: Rs 25.20 lakh crore from direct taxes (personal income tax and corporate tax) Rs 17.50 lakh crore from indirect taxes (customs, excise duty and GST) GST Goods and Services Tax (GST) collections in FY26 are estimated to rise 11 per cent to Rs 11.78 lakh crore. FY27 GST projections will be keenly watched, especially as revenue growth is expected to gain momentum following rate rationalisation measures introduced since September 2025. Nominal GDP India’s nominal GDP growth for FY26 was initially estimated at 10.1 per cent, while real GDP growth stood at 7.4 per cent, as per NSO data. However, nominal growth was revised down to around 8 per cent due to lower-than-expected inflation.FY27 nominal GDP projections—expected between 10.5 and 11 per cent—will offer cues on the government’s inflation outlook. Dividend The government has budgeted Rs 1.50 lakh crore in dividend income, including Rs 1.02 lakh crore from the RBI and financial institutions, and Rs 48,000 crore from CPSEs. With the RBI already paying a higher-than-expected dividend of Rs 2.69 lakh crore in FY26, Budget estimates are likely to be revised upward. Dividend assumptions will be closely scrutinised, given recent tax relief measures. Subsidy Total subsidy allocation for FY26 stands at Rs 3.83 lakh crore, with food subsidy capped at Rs 2.03 lakh crore. Key schemes and sectors The spotlight will also be on allocations for flagship schemes such as VBG RAM G, along with spending on health, education, and other priority sectors.
01 February,2026 11:28 AM IST |Prime Minister Narendra Modi and Home Minister Amit Shah arrived in Parliament to attend the Budget session on Sunday. Parliamentary Affairs Minister Kiren Rijiju also arrived at the Parliament to attend the Cabinet meeting just before the presentation of Union Budget 2026-27 by Union Finance Minister Nirmala Sitharaman. Speaking to ANI, Rijiju said, "It will be a historic budget. The PM's 'Reform Express' will move forward speedily towards Viksit Bharat." Union Minister Shivraj Singh Chouhan said this would be, "Viksit aur Aatmanirbhar Bharat ka Budget." The Union Cabinet, headed by Prime Minister Narendra Modi, will approve the Union Budget 2026-27 in Parliament. Earlier, Sitharaman arrived at the Parliament to attend the Cabinet meeting ahead of presenting the Budget 2026-27 in Lok Sabha. Meanwhile, President Droupadi Murmu offered 'dahi-cheeni' (curd and sugar) to Union Finance Minister Nirmala Sitharaman when she arrived at the Rashtrapati Bhavan. The 'dahi-cheeni' ritual is carried out by the President as it is considered an auspicious commencement of the day. This customary good-luck gesture was made during the Finance Minister's meeting with President Murmu at Rashtrapti Bhavan. Minister of State for Finance Pankaj Chaudhary was also present on the occasion. The Finance Minister was seen discussing the contours of the Budget proposals with the President. Ahead of her arrival at Rashtrapati Bhavan, Sitharaman was seen carrying her trademark 'bahi-khata', a tablet wrapped in a red-coloured cloth bearing a golden-coloured national emblem on it. MoS Pankaj Chaudhary, Chief Economic Advisor Dr V Anantha Nageswaran, Chairman of the Central Board of Direct Taxes (CBDT) Ravi Agrawal and other officials of the Finance Ministry were seen accompanying the Finance Minister. Sitharaman is set to present her ninth consecutive Union Budget today at 11 am in the Lok Sabha, which will see her equal former Finance Minister P Chidambaram's record and surpass that of Pranab Mukherjee. Former Prime Minister Morarji Desai continues to hold the record for presenting 10 term the most Union Budgets in independent India. Sitharaman will present a statement of the estimated receipts and expenditure of the Government of India for the year 2026-27. The Finance Minister will also lay on the table two statements under Section 3(1) of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003. These include the Medium-term Fiscal Policy-cum-Fiscal Policy Strategy Statement and the Macro-economic Framework Statement. The List of Business further states that Sitharaman will move for leave to introduce the Finance Bill, 2026, in the Lok Sabha. She will also formally introduce the Bill. The Finance Bill gives legal effect to the financial proposals of the government.FM Sitharaman is set to present India's ninth consecutive Union Budget. On Thursday, Union Finance Minister Nirmala Sitharaman tabled the Economic Survey of India in Parliament for the financial year 2025-26. The tabling of the Economic Survey ahead of the Budget follows the long-standing tradition of outlining the state of the economy before detailing future fiscal plans. The Economic Survey of India is regarded as the nation's official annual "report card" on the economy. It provides a comprehensive, data-backed review of the economy's performance over the previous year and offers a broad roadmap for future policy direction. As the government's flagship annual report, it reviews key economic developments over the past 12 months. The survey plays a crucial role in the lead-up to the Union Budget. While the Budget focuses on future government spending, taxation, and policy measures, the Economic Survey explains why those decisions are necessary by analysing past economic performance and trends. The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs under the leadership of the Chief Economic Adviser (CEA). It is presented in two parts, each focusing on different aspects of the economy. The Budget session will span 30 sittings over 65 days, concluding on April 2. The two Houses will adjourn for a recess on February 13 and reconvene on March 9 to enable the Standing Committees to examine the Demands for Grants of various ministries and departments. This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
01 February,2026 11:28 AM IST | New Delhi | ANIADVERTISEMENT
-1769928448206_d.png?tr=w-436,h-271 "GST collections remain robust amid economic activity. Representational Image")
-1769926333134_d.png "Precious metals see sharp selloff after record rally. Representational Image")
