Biggest defence budget ever announced:Lucknow, Bhopal and Jaipur to get ₹5,000 crore; Tamil Nadu, Bengal get rail corridors

Finance Minister Nirmala Sitharaman presented the Union Budget 2026 on Sunday. In her 85-minute speech in Parliament, she spoke about the largest-ever defence budget, easier tax filing, railway projects, and three new Ayurvedic AIIMS, but made no major announcements for the common man. In the first budget after Operation Sindoor, the defence budget was raised from ₹6.81 lakh crore to ₹7.84 lakh crore, an increase of 15.2%. Of this, ₹2.19 lakh crore has been set aside for buying weapons and modernising the armed forces, up from ₹1.80 lakh crore last year. This marks a 22% rise in capital expenditure. Assembly elections are due this year in West Bengal, Tamil Nadu, Kerala, Assam, and Puducherry. While the budget did not include major announcements specifically for these states, Tamil Nadu and West Bengal received high-speed rail corridor projects. Under the City Economic Regions (CIR) scheme, ₹5,000 crore has been allocated over five years for Tier-2 and Tier-3 cities to promote economic growth, investment, and jobs in cities such as Bhopal, Jaipur, and Patna. Before the budget announcements, a cartoon by Sandeep Pal was shown…. Budget 2026: What election-bound states received? Budget 2026: Top 15 announcements Budget 2026: Sector-wise breakdown 1. Income Tax: No change in slabs, extra time for returns There is no change in income tax slabs. Taxpayers will get three extra months to file revised returns, moving the deadline to March 31 instead of December 31. The new Income Tax Act will come into force from April 1, 2026. Tax forms have been redesigned to make filing easier. 2. Defence Budget: 15% increase, focus on modernisation The defence budget has been increased by 15.2% to ₹7.85 lakh crore. A total of ₹2.19 lakh crore will be spent on weapons and modernisation. ₹64,000 crore is allocated for aircraft and aero engines, ₹25,000 crore for the navy, and ₹1.71 lakh crore for pensions. 3. Health: Cheaper cancer treatment Customs duty has been removed from 17 imported cancer medicines. Medicines for seven rare diseases, including haemophilia and sickle cell disease, have also been made duty-free. 4. Girls’ Education: Hostels in every District Girls’ hostels will be built in all 789 districts, with special focus on encouraging girls to study science, technology, engineering, and mathematics (STEM). 5. Women: Income and employment boost SHE-Marts will be set up under the Lakhpati Didi model. These will be run by women’s self-help groups to sell food, handicrafts, clothing, and local products directly, reducing the role of middlemen. 6. Ayurveda: Global Bio-pharma hub Three Ayurvedic AIIMS will be established. National testing labs will be set up, and ₹10,000 crore will be invested to make India a global bio-pharma hub and train one lakh specialist healthcare workers over five years. 7. Green Energy: Support for EVs and Solar Power Tax exemptions have been expanded for machines used in battery energy storage systems. Duty has also been removed on materials used in solar glass production, lowering costs. 8. Minerals: Rare Earth corridors Rare earth corridors will be built in Kerala, Tamil Nadu, Odisha, and Andhra Pradesh to support electric vehicle manufacturing. 9. Agriculture and Fisheries Three crore people will benefit from the Coconut Promotion Scheme. Fish farming will be promoted through 500 new ponds and Amrit Sarovars. Animal husbandry and sandalwood production will also be strengthened. 10. Handloom and Khadi A new National Handloom Policy will support artisans. Mega textile parks will be developed, and Khadi will be promoted under the One District, One Product scheme. 11. Transport: High-Speed Rail and Waterways Seven high-speed rail corridors will be built. Twenty new national waterways will be developed, and ship repair facilities will be set up in Varanasi and Patna. 12. Tourism Ten thousand tourist guides will be trained at 20 destinations. Eco-friendly trekking routes will be developed in Himachal Pradesh, Uttarakhand, and Jammu and Kashmir. 13. TCS Relief on Foreign Spending TCS on foreign remittances above ₹10 lakh for education or medical treatment has been reduced from 5% to 2%. 14. Content creator labs Content Creator Labs will be set up in 500 colleges and 15,000 secondary schools to train students in digital media, AI content, and podcasts. 15. Investment in Tier-2 and Tier-3 cities ₹12.2 lakh crore has been allocated to improve infrastructure, housing, transport, and public services in cities with populations above five lakh. 16. Semiconductor Mission 2.0 A new phase of the Semiconductor Mission has been announced to boost chip manufacturing in India. 17. Human Resources for the Health Sector To strengthen healthcare services, the government will train 1 lakh new allied health professionals. This move aims to increase the capacity of hospitals and improve medical infrastructure. 18. Focus on Fiscal discipline The government has set a target to keep the fiscal deficit at 4.3% of GDP. This is aimed at ensuring economic stability and boosting investor confidence. 19. Interest on Motor accident compensation made Tax-free Interest earned on compensation from motor accident claims will no longer attract TDS. Earlier, a 10% TDS was deducted, causing hardship to victims. The government said this interest is meant to support victims and has therefore been made fully tax-free. 20. Tax exemption on SGBs bought from Stock Exchanges withdrawn Sovereign Gold Bonds purchased from stock exchanges will no longer enjoy tax exemption. Earlier, gains on redemption at maturity were tax-free, but this benefit has now been removed for bonds bought from the secondary market. The government said the move is aimed at ensuring tax parity and clarity in tax rules. What did the states get in the Central Budget? Rajasthan Rajasthan has 41 districts, and under the central government scheme, one girls’ hostel will be built in each district. The state will receive ₹90,445 crore as its share of central taxes. This is ₹6,505.40 crore more than last year. Uttar Pradesh Two high-speed rail corridors of 500 km each and a ship repair centre have been approved. One corridor will connect Delhi and Varanasi, while the other will run from Varanasi to Siliguri in West Bengal. Kashi has received special focus, with two rail corridors starting from the city and a port also planned. Bihar A dedicated ship repair centre will be set up in Patna. The Varanasi–Siliguri high-speed rail corridor is expected to directly benefit Buxar, Ara, Patna, Katihar, and Kishanganj. Eight cities will receive extra funds for development, including Patna, Muzaffarpur, Bhagalpur, Darbhanga, Begusarai, Nalanda, Purnia, and Gaya. Gujarat Gujarat will benefit indirectly from several central government initiatives. These include Semiconductor Mission 2.0, the Rare Earth Corridor, expansion of the high-speed rail network, ₹12.2 lakh crore in capital expenditure, and the development of national waterways. These measures are expected to strengthen the state’s industry, logistics, technology, and port-based economy. Madhya Pradesh An allocation of ₹10,000 crore has been made to develop India as a global biopharmaceutical manufacturing hub. Part of this amount will be used for the pharma hub coming up in Pithampur. In addition, around ₹2,000 crore has been allocated for infrastructure and development. Girls’ hostels will be built in 55 districts. Ten Tier-2 and Tier-3 cities in the state will benefit from a ₹5,000 crore development fund. Complete account of government income, debt, and deficit The government has set a target to reduce the country’s total debt to 50% (±1) of GDP by 2030–31. Total debt stood at 56.1% of GDP in 2025–26 and is expected to fall to 55.6% in 2026–27. Lower debt will reduce interest payments and allow more spending on sectors such as education, healthcare, and infrastructure. Fiscal deficit falls below 4.5% of GDP Fiscal deficit refers to the difference between government revenue and expenditure. The government has stated that it has brought the deficit below 4.5% of GDP. The deficit will be 4.4% in 2025-26, and the target is to further reduce it to 4.3% for the next year (2026-27). Last year, the government’s total revenue was ₹34 lakh crore The expenditure was ₹49.6 lakh crore. Of this, ₹26.7 lakh crore came from taxes, while the total expenditure was ₹49.6 lakh crore. Capital expenditure, or approximately ₹11 lakh crore, was spent on building new bridges, highways, and infrastructure. The government has estimated total revenues of ₹36.5 lakh crore next year Of this, ₹28.7 lakh crore will come from taxes. Total expenditures are estimated to be around ₹53.5 lakh crore. Expenditures are more than revenues, so the government will borrow ₹11.7 lakh crore from the market. The remaining funds will come from small savings schemes.