Synopsis: Union Budget 2026 raised total outlay to ₹53.47 lakh crore from ₹50.65 lakh crore, boosting allocations across key sectors, while markets reacted cautiously with Nifty and Sensex slipping nearly 3% intraday amid mixed investor sentiment.
The Union Budget 2026, presented on 1 February 2026 by Finance Minister Nirmala Sitharaman, reinforced the government’s commitment to growth-oriented reforms and long-term economic resilience. The policy thrust remained centred on strengthening manufacturing, export competitiveness, and structural reforms, reflecting an intent to sustain India’s growth momentum amid persistent global uncertainties. While the budget stayed aligned with reform-linked initiatives and production-focused sectors, market participants initially reacted with caution, weighing the fiscal strategy against near-term economic challenges.
In terms of overall fiscal size, the government continued to scale up spending. The total Union Budget outlay increased from Rs. 50,65,345.04 crore in FY26 to Rs. 53,47,314.81 crore in FY26-27, reflecting a clear step-up in expenditure to support economic growth. The higher allocation underscores the government’s intent to maintain momentum in public spending, particularly to crowd in private investment and strengthen domestic demand across key sectors.
On the market front, benchmark indices Sensex and Nifty witnessed volatile trade post-Budget, reflecting mixed investor sentiment. The Nifty opened at 25,333.75 and declined to an intraday low of 24,571.75, marking a fall of about 3 percent from its opening level and closed at 24,825.45. While the Sensex opened at 82,388.97 and slipped to an intraday low of 79,899.42, also marking a near 3percent decline from the open and closed at 80,722.94. Below is the list of Sector in which government has increased Budget Allocation –
| Name of Sector | FY 25-26 ( in ₹ Cr.) | FY 26-27 ( in ₹ Cr.) | Increase (%) |
|---|---|---|---|
| MINISTRY OF FINANCE | 1,939,001.26 | 1,972,509.48 | 1.73 |
| MINISTRY OF DEFENCE | 681,210.27 | 784,678.28 | 15.19 |
| MINISTRY OF ROAD TRANSPORT AND HIGHWAYS | 287,333.16 | 309,875.30 | 7.85 |
| MINISTRY OF RAILWAY | 255,445.18 | 281,377.32 | 10.15 |
| MINISTRY OF HOME AFFAIRS | 233,211 | 255,233.53 | 9.44 |
| MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION | 215,767.09 | 239,521.37 | 11.01 |
| MINISTRY OF RURAL DEVELOPMENT | 190,405.53 | 197,023.14 | 3.48 |
| MINISTRY OF CHEMICALS AND FERTILISERS | 161,965.21 | 177,061.47 | 9.32 |
| MINISTRY OF AGRICULTURE AND FARMERS WELFARE | 137,756.55 | 140,528.78 | 2.01 |
| MINISTRY OF HEALTH AND FAMILY WELFARE | 99,858.56 | 106,530.42 | 6.68 |
| MINISTRY OF NEW AND RENEWABLE ENERGY | 26,549.38 | 32,914.67 | 23.98 |
| MINISTRY OF PETROLEUM AND NATURAL GAS | 19,326.90 | 30,443.22 | 57.52 |
| MINISTRY OF POWER | 21,847.00 | 29,996.85 | 37.3 |
| MINISTRY OF WOMEN AND CHILD DEVELOPMENT | 26,889.69 | 28,183.00 | 4.81 |
| MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES | 23,168.15 | 24,566.27 | 6.03 |
| MINISTRY OF EXTERNAL AFFAIRS | 20,516.61 | 22,118.97 | 7.81 |
| MINISTRY OF TRIBAL AFFAIRS | 14,925.81 | 15,421.97 | 3.32 |
| MINISTRY OF SOCIAL JUSTICE AND EMPOWERMENT | 14,886.00 | 15,357.31 | 3.17 |
| MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP | 6,100.10 | 9,885.80 | 62.06 |
| MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING | 7,544.07 | 8,915.26 | 18.18 |
| MINISTRY OF HEAVY INDUSTRIES | 7,680.23 | 7,939.90 | 3.38 |
| MINISTRY OF DEVELOPMENT OF NORTH EASTERN REGION | 5,915.00 | 6,812.30 | 15.17 |
| MINISTRY OF PORTS, SHIPPING AND WATERWAYS | 3,470.58 | 5,164.80 | 48.82 |
| MINISTRY OF YOUTH AFFAIRS AND SPORTS | 3,794.30 | 4,479.88 | 18.07 |
| MINISTRY OF MINES | 3,038.00 | 3,806.45 | 25.29 |
| MINISTRY OF EARTH SCIENCES | 3,649.81 | 3,789.23 | 3.82 |
| MINISTRY OF COAL | 501.2 | 3,635.32 | 625.32 |
| MINISTRY OF MINORITY AFFAIRS | 3,350.00 | 3,400.00 | 1.49 |
| MINISTRY OF COOPERATION | 1,186.29 | 1,744.74 | 47.08 |
| MINISTRY OF PLANNING | 1,006.06 | 1,232.16 | 22.47 |
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