Finance Minister Nirmala Sitharaman is set to present her ninth consecutive Union Budget, becoming the first minister in India to achieve this feat. She is now just one budget away from matching Morarji Desai’s overall record of 10, while surpassing P Chidambaram and Pranab Mukherjee in consecutive presentations.

For the first time in independent India, the Budget is being delivered on a Sunday. While offices and markets are typically closed, the BSE and NSE are holding special sessions to allow investors to react immediately.

The 2026–27 Budget is expected to highlight the transition to the New Income Tax Act, 2025, set to replace the 1961 Act. Key sectors likely to receive major allocations include infrastructure, railways, defense, and artificial intelligence. Middle-class taxpayers are hoping for relief measures such as a higher standard deduction and expansion of the 87A rebate.

Amid global trade uncertainties and US tariffs affecting exports, today’s presentation will be closely watched for signals on India’s economic priorities and growth strategy.

Manufacturing, Exports, MSMEs & Startups In Focus

In the backdrop of Trump’s tariffs, the Union Budget 2026 is expected to focus on boosting export competitiveness, measures to enhance diversification of markets for exporters, boost to domestic and export-focused manufacturing, Production Linked Incentive Schemes, relief and ease of doing business for MSMEs and startups.

Income Tax Measures For Middle Class, Salaried

Income tax slabs and rates under the new income tax regime were revised last year. There are expectations of further relief to boost consumption. So watch this space for any changes in income tax slabs for FY 2026-27 or hike in standard deduction limits.

Indian Railways & Roadways

The government’s capital expenditure push for Indian Railways and roadways has been a much talked about point in the last few Budgets. Both these sectors have seen record allocations, and the push is expected to continue in Budget 2026 as well. Last year, Indian Railways saw the highest-ever capital allocation of Rs. 2.65 lakh crores. In fact, the total budget allocations for infrastructure have risen to over Rs 10 lakh crore in the last few years.

Defence Budget 2026-27

In light of the ongoing geopolitical tensions and escalating risks on India’s borders, the defence budget will be a major focus area this time. Post Operation Sindoor, and with the success of indigenous weapons, it remains to be seen by how much the defence budget is hiked. Last year, the defence sector saw a record allocation of Rs 681,210 crore or 6.81 lakh crore. Economists and experts believe that the capital expenditure component of the defence budget may see a big jump this year.

Indian economy outlook

India is the world’s fastest growing major economy and has defied odds and beaten expectations to grow at a fast pace in this financial year so far. In the coming years, the Indian economy will not only become a $5 trillion economy, but also the world’s third largest. Budget 2026 is expected to talk about the road to these milestones, while also aiming to become a $10 trillion economy.

Republished. Link to Original Article: https://timesofindia.indiatimes.com/business/india-business/union-budget-2026-live-updates-key-highlights-income-tax-railways-defence-fm-nirmala-sitharaman-speech-announcements-india-budget-2026/liveblog/127830282.cms