Union Budget 2026 LIVE Updates: Sensex Slumps on Budget Day, Marks 8th Loss in 15 Presentations Since 2014

Union Budget 2026-27 proposes total spending of Rs 53.47 lakh crore, with a strong focus on growth, inclusion and long-term capacity building. The finance ministry received the largest share, followed by defence and infrastructure ministries.

Union Budget 2026–27 backs growth over grants, unlocking big opportunities for Kerala in rare earths, MSMEs, coconut, cashew, fisheries, tourism and green growth through record capital outlay.

Stock markets fell sharply on Budget day after govt raised Securities Transaction Tax on futures trading. Sensex closed down nearly 1.9%, Nifty lost almost 2%. While Budget supported growth sectors, higher trading costs triggered knee-jerk sell-off.

In the 15 Union Budgets presented by the Modi government since 2014, the BSE Sensex has ended in the red eight times. On Sunday, benchmark indices tumbled after FM Nirmala Sitharaman proposed raising the Securities Transaction Tax (STT) on derivatives. The 30-share Sensex fell 1,546.84 points (1.88%) to 80,722.94, while the NSE Nifty lost 495.20 points (1.96%) to 24,825.45. Experts attributed the drop to low market expectations, limited outlays, and the STT hike. Despite supporting sectors like data centres, semiconductors, textiles, MSMEs, and biopharma, the budget triggered a knee-jerk negative reaction. Historically, Sensex has shown mixed responses on Budget days, with significant gains and losses across years.

West Bengal CM Mamata Banerjee slammed the Union Budget 2026–27, calling it a “directionless and visionless Humpty Dumpty Budget” that neglects the common people and Bengal. Speaking at Kolkata airport, she alleged cuts in education, social security, and fertiliser subsidies, calling the Budget “anti-people, anti-women, anti-farmer, anti-education, and against SCs, STs and OBCs.” 

Banerjee pointed to the Sensex drop of over 1,100 points and Nifty slipping below 25,000 as proof of its impact. She criticised Centre’s repeated infrastructure announcements, claiming the economic corridors and freight projects are old plans. Highlighting Bengal’s investment potential, she said Rs 72,000 crore would go into the 'Jungle Sundari' corridor. 

Banerjee accused the Centre of financial deprivation, saying it owes Bengal over Rs 2 lakh crore, and warned of erosion of institutions, federal and social structures.

​​Former finance minister P Chidambaram criticised the Union Budget, claiming that the Centre’s capital expenditure has declined and funds have been reduced for several crucial sectors and programmes.

Speaking on the Budget, Chidambaram said it appeared that the government and the finance minister had discarded the Economic Survey and instead fallen back on what he described as their “favourite pastime of throwing acronyms at the people”.

He also said the Union Budget could “certainly not be described as a bold exercise in fiscal prudence and consolidation”, questioning the government’s approach to managing public finances.

Former finance minister P Chidambaram criticised the Centre for making no allocation for the Chabahar port in the Union Budget, alleging that the government was “succumbing to somebody’s pressure”, a remark seen as a reference to pressure arising from US tariff measures.

Ex-FM P Chidambaram mounted a sharp attack on the Union Budget 2026, accusing the government of ignoring serious warnings flagged in the Economic Survey 2025–26. He questioned whether the Finance Minister had even read the survey, saying it appeared to have been conveniently discarded in favour of “throwing words and acronyms at the people.”

He said Budget failed to address major economic challenges, including stress on manufacturers and exporters due to penal US tariffs, the widening trade deficit—particularly with China—the uncertain outlook for foreign direct investment, and persistent foreign portfolio investor outflows over recent months.

He noted the muted reaction in Parliament reflected these omissions, describing the applause as half-hearted and short-lived, with members losing interest quickly.

He added the Budget presented a weak picture of fiscal management, calling it a poor accounting of public finances for 2025–26.

"FM Sitharaman peppered her speech with schemes, programmes and hubs. Union Budget failed the test of economic strategy. Depreciation of rupee not addressed," the ex-FM said.

Union Minister Hardeep Singh Puri said Union Budget 2026 comes at a time of global uncertainty, with India standing as a stable and calm economy. He highlighted that this is Finance Minister Nirmala Sitharaman’s ninth consecutive budget and noted India’s rise from the world’s tenth to fourth-largest economy, with GDP growing from $2 trillion to $4.3 trillion. Puri praised the budget’s long-term vision till 2047, including a 20-year tax holiday for cloud data centres and strong focus on critical minerals essential for energy and electric vehicles.

Union Minister Piyush Goyal hailed Budget 2026, saying it offers hope for youth, farmers, fishermen, and businesses, with strong focus on manufacturing growth. Key sectors such as technology, electronics, and export containers will be supported. MSMEs receive Rs 10,000 crore and a new credit guarantee scheme. Old industrial estates will be revived, new sector-specific zones created, and Tier-2 and Tier-3 cities prioritised, alongside major infrastructure spending, while keeping the fiscal deficit under control.

Union Minister Dharmendra Pradhan said Budget 2026 expands education funding to ₹1.39 lakh crore, an 8.27% rise from last year. He highlighted strong contributions by women in science and technology and announced plans to build girls’ hostels in every state with state governments. The budget also proposes creating a university council to strengthen educational infrastructure and support a knowledge-based economy.

Union Minister Kiren Rijiju said Budget 2026 strongly reflects Prime Minister Modi's 'Reform Express' vision for a developed India. He praised the finance minister’s announcements, especially for eastern India, express highways, the Buddhist circuit, and major initiatives for minorities, calling the budget impactful, serious, and far beyond political statements.

Kerala BJP President Rajeev Chandrasekhar expressed his hopefulness with the Budget 2026 calling it 'a budget that is a continuation of the last 11 years'. He told ANI, "The last 11 years of economic policymaking by Prime Minister Narendra Modi have made us the fourth-largest and fastest-growing economy in the world... This is certainly an economy for 'Viksit Bharat'... it identifies many areas that will be key to the future global economy... Rare earth is one thing where Kerala will benefit, and then directly benefit."

Samajwadi Party MP Ziaur Rehman Barq said that the budget is disappointing for common people who had high hopes. He told ANI, "There is nothing in the budget that fulfils those hopes. As Akhilesh Yadav has said, it's as if people will now have to use gold-plated brass, meaning that just as the prices of silver and gold are skyrocketing, the question will arise, and the answer will be given that this is due to international factors. But somewhere, the policies within our nation, and their failures, are also responsible for these rising prices. If the common people are to be considered, what is the point of making a budget for only 5% of the population while neglecting the remaining 95%?"

CII Vice President Suchitra Ella said Budget 2026 strongly prioritises the biopharma sector, with ₹10,000 crore support over five years. She highlighted India’s strength in affordable generic medicines, while stressing the need to invest in research, clinical trials, new technologies, and strict domestic and global regulatory compliance.

SP MP Priya Saroj criticised Budget 2026 saying, "This budget has not been made women-centred. We had high expectations from the government, but now all our hopes have been dashed... There is a need for a detailed analysis of this. However, what I understand is that there is nothing for ordinary people and farmers in this budget... This is just a budget based on data."

Industry experts praise Union Budget 2026-27 for its focus on manufacturing, export competitiveness, and clean tech. The budget's emphasis on MSMEs, increased capital expenditure, and rural development is seen as a major boost for India's economy.

For the financial year 2026, income tax slabs will remain unchanged for both the new and old tax regimes. The new regime, which is the default option, features lower tax rates and a basic exemption of up to Rs 4 lakh but offers fewer deductions.

“The Union Budget reflects the aspirations of 140 crore Indians. It strengthens the reform journey and charts a clear roadmap for Viksit Bharat,” said PM Modi.

• Defence ministry allocated Rs 7.8 lakh crore for FY 2026-27, a 15% increase.
• Capital Outlay for modernisation: Rs 2.19 lakh crore, up 21.84% from Rs 1.80 lakh crore in FY25-26.
• Key projects: Rafale fighter jets, submarines, UAVs.
• Defence civil budget reduced slightly by 0.45% to Rs 28,554.61 crore.
• Defence services (Revenue & Capital): Rs 3,65,479 crore and Rs 2,19,306 crore (+17.24% & +21.84%).
• Defence pensions: Rs 1,71,338 crore.
• Customs duty exemption on raw materials for aircraft parts in defence manufacturing.
• Tariff on personal imports reduced from 20% to 10% in response to US tariffs.

On Union Budget 2026, Vice President IMC Chamber of Commerce & Industry, Mahendra Kumar Chouhan says, “It's a strategic budget with a focus on inclusive growth. It has taken care of various stakeholders in a very balanced manner. For example, it has taken care of the youth. It has taken care of women, taken care of farmers, MSMEs, the semiconductor industry, and the electronic industry.”

Union Minister Jyotiraditya Scindia says," It is a progressive Budget that focuses on every sector of the Indian economy. It is a Budget for every citizen. Particularly, the areas of telecom and DoNEAR have received strong impetus in this Budget. It will empower and power India. A lot of institutions and waterways have been allocated to the North East."

BJP MP RS Prasad says," It is a progressive Budget which makes clear the way for Viksit Bharat."

Effective February 1, 2026, the government has significantly increased taxes on cigarettes, tobacco, and pan masala. This major tax revamp includes raising the GST to 40% and adding new excise duties and a Health and National Security Cess.

TMC MP Saugata Roy says, “This budget is nothing. The Finance Minister did not get any chance to bring in new things; only previous schemes were repeated. None of the states got any thing specially West Bengal.”

"While the documents need to be studied in detail, it is clear after 90 mins that Budget 2026/27 falls woefully short of the hype that was generated about it. It was totally lacklustre. The speech was also non-transparent since it gave no idea whatsoever of budgetary allocations for key programmes and schemes."

Finance Minister Nirmala Sitharaman presented the central budget for the ninth time. Her budget speech lasted 85 minutes.

Union FM Nirmala Sitharaman says, "To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines. I propose also to add 7 more rare diseases for the purposes of exempting import duties on personal import of drugs, medicines and food for special medical purposes used in their treatment."

Union FM Nirmala Sitharaman says, "To rationalise the customs duty structure for goods imported for personal use, I propose to reduce the tariff rate on all dutiable goods, imported for personal use, from 20% to 10%."

Union FM Nirmala Sitharaman says, "I propose as a special one-time measure to facilitate sales by eligible manufacturing units in SEZs (Special Economic Zones) to the domestic tariff area at concessional rates of duty. The quantity of such sales will be limited to a prescribed proportion of their exports."

Union FM Nirmala Sitharaman said, "It is proposed to exempt basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair or overall requirements by units in the defence sector."

What Gets Cheaper, What Gets Costlier, Full List That Hits Your Wallet here

Union FM Nirmala Sitharaman says, "It is proposed to provide basic customs duty exemption to the import of capital goods required for the processing of critical minerals in India."

Union FM Nirmala Sitharaman says, "I propose to extend the basic customs duty exemption on import of goods required for nuclear power projects till 2035 and expand it for all nuclear plants irrespective of their capacity."

Union FM Nirmala Sitharaman says, "I propose to extend the basic customs duty exemption given to capital goods used for manufacturing lithium-ion cells for batteries to those used for manufacturing lithium-ion cells for battery energy storage systems also. I propose to exempt the basic customs duty on import of sodium antimonate for use in the manufacturing of solar glass."

Union FM Nirmala Sitharaman says, "I propose to increase the limit for duty-free imports of specified inputs used for processing sea foods for export from the current 1% to 3% of FOB value of the previous year's export turnover. I also propose to allow duty-free imports of specified inputs which is currently available for exports of leather or synthetic footwear to exports of shoe uppers as well."

Union Finance Minister Nirmala Sitharaman proposed an outlay of Rs 20,000 crore over the next five years to support Carbon Capture, Utilization and Storage (CCUS) technologies. The funding aims to help scale up projects and improve technology readiness for wider end-use applications across sectors.

The Income Tax Act, 2025, is set to come into effect from 1 April 2026, featuring simplified rules, redesigned forms, and multiple direct tax relief measures, including lower TCS rates and new exemptions. These reforms aim to ease compliance for taxpayers, reduce tax burdens on specific transactions, and eliminate ambiguities impacting individuals and service providers.

• Income Tax Act 2025: New income tax framework to take effect from 1 April 2026 with simplified rules and redesigned forms.
• Motor Accident Compensation: Interest awarded by the Motor Accident Claims Tribunal to natural persons exempted from income tax.
• TCS Rates: Reduction of TCS on overseas tour program packages and on LRS remittances for education and medical purposes to 2%.
• Manpower Services: Supply of manpower services brought under contractor payments for TDS purposes to eliminate ambiguity.