- By Shubham Bajpai
- Sun, 01 Feb 2026 08:21 AM (IST)
- Source:JND
Union Finance Minister Nirmala Sitharaman is set to table her ninth consecutive budget in the Lok Sabha today at 11 am. Expectations are high from the government as the growth rate remains the fastest in India, and the economy is well sustained. Given the track record of the incumbent government, the fous s expected to be on boosting manufacturing and domestic demand to accelerate economic growth.
Experts believe this strategy will be most effective in reducing dependence on imports and exploring new export opportunities.
What to expect from Budget
Industrial Development and Exports: The government is focusing on increasing local production to reduce dependence on imports. Meanwhile, new incentives for the manufacturing sector are also expected in light of the challenges in increasing exports because of the global recession.
Urban and Health Infrastructure: Large allocations are expected in the upcoming fiscal year for modernising cities and making healthcare more accessible.
Municipal Rejuvenation: To make local bodies financially self-reliant, the Centre may suggest that states adopt new revenue models, which will help improve infrastructure.
Agriculture and Farmer Welfare: With the aim of doubling farmers' income, special schemes may be announced to increase their productivity and encourage them to shift from traditional farming to commercial crops. Moreover, the allocation for agriculture has risen from Rs 21,933 crore in 2013-14 to over Rs 1.27 lakh crore in 2025-26. This is expected to rise further to Rs 1.5 lakh crore.
Income Tax Relief: Due to the relief given in income tax and GST, the tax revenue growth in the current financial year 2025-26 is lower than the previous financial year; hence, the possibility of the government giving any relief in income tax this year is significantly low.
Subsidies: The government is also likely to continue to provide approximately Rs 4.5 lakh crore in subsidies for food, fertiliser, and G-RAM-G (MNREGA). Therefore, to raise revenue, the government may also make announcements in the budget on asset monetisation and disinvestment.
Capex: The upcoming fiscal year's budget is expected to see an increase in capital expenditure allocations, as in the past four or five budgets. Capital expenditure allocations are used to develop infrastructure. And hence, a few projects could also be announced.
Health and Life insurance: Removal of 18% GST on health and life insurance premiums has been one of the most vocal demands from the public, and therefore, a decision on this can be expected.
Defence: Since Operation Sindoor, the country has increased its pace of defence modernisation and acquisition. This year's budget could reflect the government's approach on large acquisitions, including a significant domestic purchase under Atmanirbhar Bharat initiative.