Union Budget 2026-27: LIVE

16th Finance Commission

FM announces that she has provided 1.4 lakh crores to the Indian states for FY 2026-27. The govt has accepted the recommendation of the commission to retain the vertical share of devolution at 41% as recommended by the commission. 

Debt to GDP ratio accounts for 55.6% in BE 2026-27 compared to 56.1% GDP in RE 2025-26

Focus on Purvodaya states and NE region: Eastcoast Industrial corridor

FM Sitharaman proposes the setting up of a dedicated Eastcoast Industrial corridor with a well connected node at Durgapur, creation of five tourism destinations and the provision of 4000 e-buses. 

Addressing its focus to the northeastern region, she proposed a launch of scheme to develop Buddhist circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura. It will cover preservation of temples and monasteries. 

NIMHANS 2.0

Reaffirming govt's focus on Mental Healthcare and traumacare, FM Sitharaman announces setting up of NIMHANS 2.0 and upgradation of National Mental Health Institutes in Ranchi and Tezpur.

Divyaang Sahara Yojana:

Divyaang Sahara Yojana will provide dignified livelihood opportunities, and timely access to high-quality assistive devices for all eligible divyaangjan.

She proposes:

• To support artificial limbs manufacturing corporation of India to setup and scale up production of assistive devices
• Invest in R & D and AI integration 
• Strengthen PM Divyasha Kendras
• Support setting up of modern retail-style centres for purchase of assistive products

Bharat Vistar AI tool for agricultural practices 

FM Sitharaman announces proposal to launch Bharat Vistar, a multilingual AI tool that shall integrate agristack portal and the ICAR portals on agricultural practices with AI systems. This will aim to enhance farm productivity, and reduce risk by providing customised advisory support. 

She also proposes the launch of She(Self help entrepreneurs)-Marts, community-owner, retail outlets within cluster level federations through enhanced and innovative financing instruments.

Agriculture 

Coming to the third Kartavya, FM Sitharaman stated that its fulfilment require targeted efforts to increase farmers income, empowering divangjan, empowering the vulnerable to access mental health and trauma care, and focus on the NE region. 

For fisheries, she announced initiatives for integrated development of 500 reservoirs and Amrit Sarovars. Along with it, she also stressed on to strengthen the fishery value chains in the coastal areas and enable market linkages, involving start-ups and women led groups together with fish farmer producer organisations. 

Talking about Animal Husbandry, she emphasised that this sector will be developed through a credit-linked subsidiary program, scaling up of livestock enterprises, enhanced creation of livestock, diary and poultry. 

She proposes a Coconut Production and Promotion Scheme to enhance productivity.

Similar proposals are also announced for high value crops such as cashew, cocoa, and Sandalwood production in the coastal areas. Whereas, Agar trees in NE and nuts such as almonds, pine nuts and walnuts in hilly regions. 

Khelo India Program: Sports Sector

The Ministry of Finance proposes a Khelo India Mission to transform the Sports sector over the next decade. The mission will facilitate:

• An integrated talent development pathways supported by training centres
• Systematic development of coaches and support staffs
• Integration of sports science and technology
• Competition and leagues to promote sports culture and platforms
• Development of sports infrastructure for training and competitions
  
  

Tourism 

FM Sitharaman propose to set up of a National Institute of Hospitality by upgrading the existing council for hotel management. It will act as a bridge between academia, industry and govt.

She also proposes a pilot scheme for upskilling 10,000 guides in 20 iconic tourist sites through standardised high quality 12 week training course in high-breed with an IIM.

A National Destination Digital Knowledge Grid will be established to digitally document all places of significance in India expanding cultural, spiritual and heritage. It will create an ecosystem for researchers, historians and content creators.

She proposes development of ecological sustainable trails in Himachal, Uttarakhand and J&K. Along with it, Turtle trails in Kerala, Odisha, Karnataka and three bird-watching trails along Pulicat lake will also be developed.

Focusing on heritage and culture tourism, she further proposes to develop 15 archaeological sites. 

Education

The govt will support states in creating five university townships in the vicinity of major industrial and logistics corridors. 

Through Viability Gap Funding (VGF) or capital support, one girl's hostel will be established in every district. 

Orange Economy

India's animation, visual ethics, gaming and comic sector (AVGC) projects a requirement of 2 million professionals by 2030. 

Sitharaman proposes to support the Indian Institute of Creative Technologies Mumbai in setting up AVGC content creator labs in 15,000 secondary schools and 500 colleges across the country.

She also proposes to establish a new National Institute of Design to boost design education and development in the Eastern region of India.