Parliament Budget Session 2026 Highlights: Economic Survey Projects FY27 GDP Growth At 7.4%; House Adjourned Till Feb 1

The Budget session will span 30 sittings over 65 days, concluding on April 2, 2026. The two Houses will adjourn for a recess on February 13, 2026 and reconvene on March 9, 2026 to enable the Standing Committees to examine the Demands for Grants of various Ministries and departments.

- India continued strong post-Covid growth in 2025, with improving performance across all quarters.

- The Reserve Bank of India aggressively cut interest rates and eased liquidity conditions.

- Measures implemented in 2023 were relaxed due to improved economic conditions.

- The government introduced significant tax breaks for households in the FY26 budget (February 2026).

- India achieved a fiscal deficit of 4.8 per cent of GDP, slightly better than the 4.9 per cent target, and set a target of 4.4 per cent for FY26.

- India met its 2021 promise to reduce the Union fiscal deficit from 9.2 per cent in FY21.

- The S&P upgrade from BBB- to BBB was India's first credit rating upgrade from a major agency in nearly two decades.

According to government data released earlier this year, the Indian economy will grow at a better-than-expected 6.5 per cent in FY2026, driven by increased investment and improved manufacturing.

This estimate is higher than the Reserve Bank of India's new forecast of 7.3 per cent, compared to 6.5 per cent growth last year.

Commenting on the Union Budget, Samajwadi Party chief Akhilesh Yadav said the Prime Minister’s address to the President spoke about India acquiring the largest metro network, but alleged that metro construction was being obstructed in the Prime Minister’s own constituency by the Uttar Pradesh Chief Minister. Referring to the death of a techie in Noida, Yadav questioned why no assistance reached the victim despite his repeated pleas for help, adding that even though the victim’s family is from Gujarat, the Prime Minister’s home state, the government failed to save his life.

Commenting on Prime Minister Narendra Modi’s media briefing, AAP MP Ashok Kumar Mittal said that only after both sides release detailed notifications on the EU deal will its actual impact be clear, including who stands to benefit from the agreement. He also raised concerns over tax deductions on foreign automobiles, warning that such measures could adversely affect domestic automobile companies.

Congress MP Deepender Singh Hooda said, "Today, the country's economy is getting hurt due to a weak foreign policy. In such a situation, it is important that this Budget provides relief to the common man of the country. Today, farmers across the country are in pain."

BJP MP Arun Govil praised Prime Minister Modi’s address to the nation ahead of the Budget session, saying that the Prime Minister has always maintained a positive outlook, prioritizing the nation above all. He added that Modi’s focus on the people underscores the truth and sincerity of his statements.

SP MP Dimple Yadav said the budget should focus on the facilities and conveniences actually reaching the public. While she welcomed a woman presenting the budget, she stressed the need to assess whether promises from previous budgets have been fulfilled.

Meghalaya Chief Minister Conrad Sangma said he met the Prime Minister and submitted a detailed report on the state’s ongoing initiatives, as well as its future goals and visions. He expressed hope that the Union Budget would continue to focus on the North East, noting the importance of this year’s Budget with the start of the 16th Finance Commission.

On the recent attack on a Pastor in Odisha, Sangma condemned the incident, saying such attacks should not happen in the country. He added that Meghalaya had written to the Odisha Chief Minister, urging action against the perpetrators.

Meghalaya Chief Minister Conrad Sangma arrived in Parliament, marking his participation in ongoing discussions and engagements at the national level.

Congress MP Ashok Singh criticised the economic survey, saying it ignores the needs of the common people. He emphasised that raising issues of the poor and laborers is the opposition’s duty, and defended advocating for MNREGA, noting that any attempt to shift its burden onto states harms laborers and marginalized communities, including tribals, Dalits, and backward classes.

Congress MP Imran Pratapgarhi commented on Finance Minister Nirmala Sitharaman’s presentation of the Economic Survey, saying, “Congratulations to her for presenting the Economic Survey for the ninth time and also presenting the budget. However, her economic survey is different from the people’s economic survey. She doesn’t care about the people’s survey, and the people don’t care about her survey.”

Congress MP Jebi Mather criticized recent changes to MNREGA, saying that when the UPA introduced the scheme, it was a right-to-work program that guaranteed employment. She alleged that current funding cuts, combined with an increased burden on states, are “strangulating the scheme” and effectively putting an end to its original purpose.

Union Finance Minister Nirmala Sitharaman on Thursday tabled the Economic Survey in the Lok Sabha.

Congress MP Dr Shashi Tharoor is meeting Leader of the Opposition in Lok Sabha Rahul Gandhi and Congress President Mallikarjun Kharge at his Parliament office. The meeting has been underway for the past half hour.

Congress MP Manickam on Tuesday criticised the government, saying it is “very unfortunate” that bills are being bulldozed one after another and the Opposition’s voice is being silenced. He condemned the removal of Mahatma Gandhi’s name from MGNREGA, calling it an insult to the Father of the Nation, and said that the party’s 30-second protest during the President’s address was to uphold the democratic right to protest. “We won’t allow Mahatma Gandhi to be insulted,” he asserted.

The Lok Sabha resumed its Budget Session on Thursday, beginning the day with the Question Hour. The proceedings opened with Chairman CP Radhakrishnan addressing the members, after which CPI MP Sandosh Kumar P raised concerns regarding Kerala’s plantation sector.

BJP MP Dr Sanjay Jaiswal on Tuesday said that if the Opposition has objections to the VB-G-RAM-G Act, it should raise them during the debate in Parliament, asserting that creating disruptions during the President’s address is condemnable.

Reacting to the Union Budget 2026, Karnataka Minister MC Sudhakar said people were once again expecting a fresh Budget but alleged that the Centre continues to mislead the public, claiming large dues remain unpaid under schemes like the Jal Jeevan Mission and accusing the Union government of undermining cooperative federalism by unilaterally deciding funding shares, frequently renaming initiatives, failing to reimburse states after commitments, and leaving the country’s financial situation in a grim state despite tall claims of development.

Prime Minister Narendra Modi said India’s democracy and demography are a major source of hope for the world, adding that Parliament must send a strong global message about the country’s capability, commitment to democratic values and respect for decisions made through democratic processes. He stressed that as India moves forward, this is not a time for obstruction but for solutions, urging all MPs to work together to strengthen governance, accelerate reforms and ensure last-mile delivery for the nation.

Prime Minister Narendra Modi said that even political opponents acknowledge that his government has focused on last-mile delivery, emphasising efforts to ensure schemes reach people’s lives rather than remain on paper, and added that this approach must be carried forward through next-generation reforms under the “Reforms Express.”

Prime Minister Narendra Modi said the country is emerging from long-pending challenges and moving confidently toward long-term solutions, stressing that while national progress remains the core goal of all decisions, governance and schemes are human-centric, adding that India will compete with, adapt to, and harness technology without undermining human values, advancing forward through a sensitive and balanced partnership between people and technology.

Speaking on the India-EU Free Trade Agreement, Prime Minister Narendra Modi said that while the nation’s attention is naturally focused on the Budget, his government’s core identity has always been to reform, perform and transform, adding that it has now swiftly taken off on a “Reform Express,” and he expressed gratitude to all MPs for their positive contributions in accelerating this process, noting that as a result, the “Reform Express” is gaining speed.

Speaking on the India-EU Free Trade Agreement, Prime Minister Narendra Modi expressed his optimism, stating that he is very confident this marks a significant step toward building a more confident, competitive, and productive India.

Prime Minister Narendra Modi stated that the new quarter has begun on a highly positive note, highlighting that a self-confident India has emerged as a beacon of hope and a center of global attention. He emphasised that the recent signing of the Free Trade Agreement between India and the European Union reflects the promising future ahead, particularly for Indian youth. Describing it as “Free Trade for Ambitious India, Free Trade for Aspirational Youth, Free Trade for Aatmanirbhar India,” he expressed confidence that Indian manufacturers will seize this opportunity to strengthen their capabilities and drive growth.

Prime Minister Narendra Modi highlighted that a quarter of the 21st century has passed, marking the start of the next 25-year phase crucial for achieving the vision of Viksit Bharat 2047. He noted that the first Budget of this new quarter is about to be presented, with Finance Minister Nirmala Sitharaman making history as the first woman FM to present the Budget in Parliament for the ninth consecutive time, a milestone in the country’s parliamentary history.

Ahead of the Budget Session, Prime Minister Narendra Modi addressed MPs, highlighting the significance of the President’s Address. He said it reflected the trust of 140 crore Indians, showcased the nation’s capabilities, and outlined the aspirations of the youth. Modi expressed confidence that lawmakers would take the guidance and expectations outlined by the President seriously as the 2026 session begins.

Union Minister of State for Civil Aviation Murlidhar Mohol is set to present documents pertaining to the Airports Economic Regulatory Authority of India (AERA) in the House. Alongside this, he will table a statement reviewing AERA’s operations in New Delhi for the year 2024-25.

The Economic Survey is prepared by the Economic Division of the Department of Economic Affairs under the Ministry of Finance. Issued on behalf of the Chief Economic Adviser, presently Dr. V. Anantha Nageswaran, it provides an in-depth review of macroeconomic trends, fiscal performance, and projections for the economy’s future course.

The Economic Survey, released ahead of the Union Budget, serves as a report card of India’s economy. Prepared by the Department of Economic Affairs, it assesses GDP growth, inflation, fiscal trends, the external sector, and key social indicators, while also highlighting emerging themes. The Survey sets the tone for government policy and provides projections for the upcoming fiscal year, which India has often surpassed in recent years.

This will mark only the second time the Union Budget is presented on a Sunday, the first being February 28, 1999, when then-Finance Minister Yashwant Sinha delivered it.

The Union Budget for the 2026-27 financial year is set to be presented in the Lok Sabha on February 1, following the Economic Survey, which will be released on January 29. Finance Minister Nirmala Sitharaman will present the Budget for a record ninth time. Subsequently, Chief Economic Adviser V. Anantha Nageswaran will address the media to highlight the key findings of the Economic Survey.

The Lok Sabha paid obituary references to Maharashtra Deputy Chief Minister Ajit Pawar, a former Member of Parliament, who tragically died in a crash landing in Baramati this morning. In his honor, Speaker Om Birla adjourned the session until 11 am on January 29.

During the 2026 Budget Session in the Parliament premises, Leader of the Opposition in the Lok Sabha, Rahul Gandhi, engaged in a conversation with Union Minister Nitin Gadkari, exchanging views on current legislative priorities and budgetary matters.

President Droupadi Murmu said that true independence is achieved only through self-reliance, quoting Gurudev Rabindranath Tagore. She highlighted her government’s efforts to make India “aatmanirbhar,” noting that products made under the Make in India initiative are now reaching markets across the world, reflecting the country’s growing global footprint.

President Murmu said that under her government’s policies, decisive action by security forces has drastically reduced Maoist terror, which once affected 126 districts, to just 8 today, with only 3 seriously impacted. She highlighted that around 2,000 people linked to Maoists have surrendered in the past year, bringing peace to lakhs of citizens, and expressed confidence that the country will soon be completely free from Maoist terror.

President Droupadi Murmu, reflecting on Operation Sindoor, said the world witnessed the valour of the Indian armed forces, as the country, using its own resources, successfully neutralized terror hotbeds. She emphasized that her government has sent a strong message that any attack on India will be met with a firm and decisive response. Measures such as keeping the Indus Water Treaty in abeyance form part of this broader fight against terrorism, while initiatives like Mission Sudarshan Chakra are underway to further strengthen the nation’s security framework.

President Droupadi Murmu highlighted the teachings of Sri Guru Tegh Bahadur Ji, who said, "bhay kahun ko deit nehn, nehn bhay manat aan," meaning we should neither instill fear in others nor be afraid ourselves. Embracing this fearless mindset and spirit, we can safeguard the nation while demonstrating that strength can be exercised responsibly and wisely, as India has consistently shown.

Despite numerous long-standing Budget practices being discontinued since the Narendra Modi government took office in 2014, such as merging the Rail Budget with the Union Budget in 2017, moving the presentation to February 1, and going fully digital in 2021, the halwa ceremony has remained a steadfast pre-Budget tradition.

President Droupadi Murmu said that due to the progressive mindset and policies of her government, women have advanced rapidly across various fields, noting a major milestone when the first batch of women cadets graduated from the National Defence Academy. She added that this achievement reinforces the belief that “naari shakti” is central to the nation’s development and empowerment.

The upcoming Union Budget is expected to incorporate the recommendations of the 16th Finance Commission, whose report has been submitted to President Droupadi Murmu. Chaired by former Niti Aayog Vice Chairman Arvind Panagariya, the Commission, constituted on December 31, 2023, provides a framework for sharing tax revenues between the Centre and the states and offers periodic guidance on Union-state fiscal relations.

President Droupadi Murmu said that the Viksit Bharat-G RAM G law has been enacted to boost employment and development in rural areas, promising 125 days of guaranteed employment in villages. As she spoke, NDA-BJP MPs applauded the initiative, while Opposition members stood in protest, demanding the withdrawal of the law.

President Droupadi Murmu said that the government is working with full sensitivity for Dalits, backward classes, tribal communities and all sections of society, adding that the vision of Sabka Saath, Sabka Vikas is having a positive impact on citizens’ lives. She noted that while social security schemes covered only about 25 crore people at the beginning of 2014, government efforts have expanded their reach to nearly 95 crore Indians today.

President Droupadi Murmu said that Babasaheb Ambedkar always emphasised equality and social justice, values that are enshrined in the Constitution and inspire the nation. She stressed that every citizen should enjoy full rights without discrimination, asserting that the government is committed to true social justice, adding that over the past decade 25 crore people have been lifted out of poverty, and that in its third term the government has accelerated efforts to further empower the poor.

President Droupadi Murmu said that with the year 2026, India has entered the second phase of the 21st century, noting that the first 25 years were marked by significant successes, proud achievements and extraordinary experiences. She added that over the past 10–11 years, the country has strengthened its foundation across all sectors, describing the current year as a crucial milestone in India’s journey towards Viksit Bharat.

In her inaugural address ahead of the Budget Session, President Droupadi Murmu praised the Narendra Modi government for launching welfare schemes that have benefited marginalized sections of society, citing initiatives such as Ayushman Bharat that have helped crores of Indians, while also lauding the government’s focus on infrastructure development, including new Vande Bharat trains, and its efforts to ensure corruption-free governance.

President Droupadi Murmu highlighted that the nation commemorated the 350th Shaheedi Diwas of Sri Guru Tegh Bahadur Ji, paid tribute to Birsa Munda during his 150th birth anniversary for his immense contribution to the tribal community, and marked the 150th birth anniversary of Sardar Patel, which further strengthened the spirit of Ek Bharat Shreshtha Bharat. She also noted that the birth anniversary celebrations of Bharat Ratna Bhupen Hazarika filled the country with music and a sense of unity, adding that remembering the contributions of the nation’s ancestors inspires the younger generation and accelerates India’s journey towards Viksit Bharat.

President Droupadi Murmu began her address to Parliament by expressing delight at speaking to the House, noting that the past year was memorable as a celebration of India’s rapid progress and rich heritage. She highlighted that 150 years of Vande Mataram are being celebrated across the country, with citizens paying tribute to Bankim Chandra Chatterjee for his enduring inspiration, and congratulated Parliamentarians for holding a special discussion in Parliament to mark the occasion.

President Droupadi Murmu was accorded a Guard of Honour upon her arrival at Parliament, marking the formal commencement of proceedings as she reached the complex amid ceremonial protocol.

The Union Budget on February 1 will mark Nirmala Sitharaman’s ninth consecutive presentation, setting a record during Prime Minister Narendra Modi’s tenure and bringing her just one short of Morarji Desai’s historic record.

The government on Tuesday rejected the opposition’s demand for renewed discussions on the VB-G RAM G Act and the SIR exercise during Parliament’s Budget session. Parliamentary Affairs Minister Kiren Rijiju stated that both issues had already been debated in the Lok Sabha and Rajya Sabha, adding that “we cannot reverse the gear.”

Parliament’s Budget Session kicks off today with President Droupadi Murmu addressing a joint sitting of both Houses. The Economic Survey is slated for January 29, followed by the presentation of the Union Budget 2026–27 on February 1.