Finance Minister Nirmala Sitharaman, delivering her historic ninth consecutive Budget speech on Sunday, declared that the government's reform express will continue unabated. Emphasizing the administration's commitment to fulfilling its kartavya (duty), she stated that the momentum of comprehensive reforms is well on track and will be maintained to bolster employment, productivity, and growth.
Budget 2026 Live Updates: Key Focus Areas
The Budget 2026 presentation comes amid global economic headwinds, with a sharp focus on reforms, capital expenditure push, and potential relief for salaried and middle-class taxpayers. As FM Sitharaman addressed the Lok Sabha, expectations were high regarding new income tax slabs for FY 2026-27 under the new tax regime, though specific announcements awaited detailed scrutiny.
Sustaining Structural Reforms
FM Sitharaman highlighted that since Prime Minister Narendra Modi's Independence Day announcement in 2025, over 350 reforms have been implemented. These include significant measures such as GST simplification, notification of labor codes, and mandatory quality control orders. High-level committees have been established to oversee these initiatives, while the central government collaborates with state governments to reduce compliance burdens and deregulate sectors.
Three Pillars for Economic Resilience
In her speech, the Finance Minister outlined three critical requirements for India's economic trajectory:
- Sustaining Momentum: Continuous, adaptive, and forward-looking structural reforms are essential to maintain growth.
- Robust Financial Sector: A resilient financial system is central to mobilizing savings, allocating capital efficiently, and managing risks effectively.
- Leveraging Technology: Cutting-edge technologies, including artificial intelligence applications, can serve as force multipliers for enhancing governance and efficiency.
Six-Point Growth Acceleration Plan
To accelerate and sustain economic growth, FM Sitharaman announced specific proposals targeting six strategic areas:
- Scaling up manufacturing in seven strategic and frontier sectors to boost industrial output.
- Rejuvenating legacy industrial sectors to modernize and enhance competitiveness.
- Creating champion MSMEs to support small and medium enterprises as growth engines.
- Delivering a powerful push for infrastructure development to improve connectivity and economic foundations.
- Ensuring long-term security and stability through policy consistency and risk mitigation.
- Developing city economic regions to foster urban growth and regional economic hubs.
16th Finance Commission Report Tabled
In a significant parliamentary move, Finance Minister Nirmala Sitharaman also tabled the 16th Finance Commission report in the Lok Sabha. The commission, chaired by former NITI Aayog Vice-Chairman Arvind Panagariya, includes notable members such as former bureaucrat Annie George Mathew, economist Manoj Panda, SBI Group Chief Economic Advisor Soumya Kanti Ghosh, and RBI Deputy Governor T Rabi Sankar. This report is expected to provide crucial recommendations on fiscal devolution and financial governance for the coming years.
As Budget 2026 unfolds, stakeholders across sectors are closely monitoring these announcements for their potential impact on India's economic landscape, with reforms and growth strategies taking center stage in FM Sitharaman's record-setting presentation.
