Why in news?

Union Minister for Finance presented the Union Budget 2026–27 in Parliament, the first to be prepared in Kartavya Bhawan.

The Budget is anchored around three “kartavyas” (duties). The first focuses on accelerating and sustaining economic growth by boosting productivity, competitiveness, and resilience amid global uncertainties.

The second aims to fulfil people’s aspirations by strengthening their capacities and making them active partners in India’s prosperity.

The third, aligned with the vision of Sabka Saath, Sabka Vikas, seeks to ensure inclusive access to resources, amenities, and opportunities so that every family, region, and sector can meaningfully participate in growth.

What’s in Today’s Article?

• Union Budget 2026–27: Key Fiscal Estimates
• First Kartavya — Accelerating and Sustaining Economic Growth
• Second Kartavya: Fulfilling Aspirations and Building Human Capacity
• Third Kartavya: Sabka Saath, Sabka Vikas through Targeted Inclusion

Union Budget 2026–27: Key Fiscal Estimates

• Receipts and Expenditure
  • Non-debt receipts are estimated at ₹36.5 lakh crore.
  • Total expenditure is projected at ₹53.5 lakh crore.
  • Centre’s net tax receipts are estimated at ₹28.7 lakh crore.
• Borrowings
  • Gross market borrowings are pegged at ₹17.2 lakh crore.
  • Net market borrowings from dated securities are estimated at ₹11.7 lakh crore.
• Revised Estimates for 2025–26
  • Non-debt receipts stand at ₹34 lakh crore, with net tax receipts of ₹26.7 lakh crore.
  • Total expenditure is revised to ₹49.6 lakh crore, including capital expenditure of about ₹11 lakh crore.
• Fiscal Deficit
  • Fiscal deficit (BE 2026–27) is estimated at 4.3% of GDP.
  • Fiscal deficit (RE 2025–26) remains at 4.4% of GDP, unchanged from the Budget Estimate.
• Debt Position
  • Debt-to-GDP ratio is projected to decline to 55.6% in BE 2026–27, from 56.1% in RE 2025–26, indicating gradual fiscal consolidation.

First Kartavya — Accelerating and Sustaining Economic Growth

• The first Kartavya focuses on boosting productivity, competitiveness, and resilience through six major interventions.

1.Scaling Up Manufacturing in Strategic and Frontier Sectors

• Biopharma and Healthcare Manufacturing
  • Biopharma SHAKTI launched with an outlay of ₹10,000 crore over five years to position India as a global biopharma hub.
  • Creation of a biopharma network with 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgradation of 7 existing institutes.
  • Establishment of 1,000+ accredited clinical trial sites across India.
• Semiconductors and Electronics
  • India Semiconductor Mission (ISM) 2.0 to promote equipment and material manufacturing, full-stack Indian IP, and industry-led R&D and training.
  • Electronics Components Manufacturing Scheme outlay increased to ₹40,000 crore.
• Critical Minerals and Chemicals
  • Dedicated Rare Earth Corridors to be set up in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu for mining, processing, R&D, and manufacturing.
  • Scheme to support States in establishing 3 Chemical Parks through a cluster-based, plug-and-play challenge route.
• Strengthening Capital Goods Capability
  • Hi-Tech Tool Rooms to be set up by CPSEs at two locations as digitally enabled automated service bureaus.
  • Construction and Infrastructure Equipment (CIE) Scheme to strengthen domestic manufacturing of high-value, advanced equipment.
  • Container Manufacturing Scheme with over ₹10,000 crore outlay over five years to build a globally competitive ecosystem.
• Integrated Programme for the Textile Sector
  • National Fibre Scheme for self-reliance in natural fibres (silk, wool, jute), man-made fibres, and new-age fibres.
  • Textile Expansion and Employment Scheme to modernise traditional clusters with capital support, technology upgradation, and common testing facilities.
  • Mega Textile Parks in challenge mode focusing on technical textiles.
  • Mahatma Gandhi Gram Swaraj Initiative to strengthen khadi, handloom, and handicrafts through skilling, quality improvement, branding, and global market linkage.

2.Rejuvenating Legacy Industrial Sectors

• Scheme announced to revive 200 legacy industrial clusters by improving cost competitiveness and efficiency through infrastructure and technology upgrades.

3.Creating “Champion SMEs” and Supporting Micro Enterprises

• ₹10,000 crore SME Growth Fund to nurture future “Champion SMEs” based on defined performance criteria.
• Additional ₹2,000 crore allocation to the Self-Reliant India Fund to support micro enterprises and ensure access to risk capital.
• Professional bodies such as ICAI, ICSI, and ICMAI to develop short-term courses and tools to create ‘Corporate Mitras’, especially in Tier-II and Tier-III towns.

4.Delivering a Powerful Push to Infrastructure

• Public Capex and Risk Mitigation
  • Public capital expenditure increased to ₹12.2 lakh crore in FY 2026–27.
  • Infrastructure Risk Guarantee Fund to boost private developer confidence during construction phases.
  • Monetisation of CPSE real estate through dedicated REITs.
• Logistics, Waterways and Coastal Shipping
  • New Dedicated Freight Corridor from Dankuni to Surat.
  • 20 new National Waterways to be operationalised over five years, starting with NW-5 in Odisha.
  • Ship repair hubs for inland waterways at Varanasi and Patna.
  • Coastal Cargo Promotion Scheme to raise modal share of waterways and coastal shipping from 6% to 12% by 2047.
• Aviation and Connectivity
  • Incentives for indigenous seaplane manufacturing and last-mile connectivity.
  • Seaplane VGF Scheme to support operations and tourism.

5.Ensuring Long-Term Energy Security

• ₹20,000 crore outlay over five years for Carbon Capture, Utilisation and Storage (CCUS)

6.Developing City Economic Regions (CERs)

• ₹5,000 crore per CER over five years through a reform-linked, results-based challenge mechanism.
• Development of seven high-speed rail corridors as growth connectors:
  • Mumbai–Pune
  • Pune–Hyderabad
  • Hyderabad–Bengaluru
  • Hyderabad–Chennai
  • Chennai–Bengaluru
  • Delhi–Varanasi
  • Varanasi–Siliguri

Financial Sector and Urban Finance Reforms

• High-Level Committee on Banking for Viksit Bharat to align banking with future growth needs.
• Restructuring of PFC and REC to improve scale and efficiency of public sector NBFCs.
• Review of FEMA (Non-Debt Instruments) Rules to modernise foreign investment regulations.
• ₹100 crore incentive for municipal bond issuances above ₹1,000 crore to deepen urban bond markets.

Second Kartavya: Fulfilling Aspirations and Building Human Capacity

• The Second Kartavya focuses on strengthening human capital, skills, and services-led growth, positioning people as central partners in India’s development journey.
• Education–Employment–Enterprise Linkage
  • A High-Powered ‘Education to Employment and Enterprise’ Standing Committee to be set up.
  • The committee will recommend measures to strengthen the services sector as a core driver of Viksit Bharat.
• Creating Professionals for Viksit Bharat
  • Upgradation of existing Allied Health Professional (AHP) institutions and establishment of new AHP institutions in both government and private sectors.
  • Addition of 1 lakh Allied Health Professionals over the next five years.
  • Establishment of five Regional Medical Hubs to promote India as a global medical tourism hub.
• Strengthening AYUSH Systems
  • Establishment of three new All India Institutes of Ayurveda to strengthen education, research, and healthcare delivery in traditional medicine systems.
• Animal Husbandry and Veterinary Services
  • Scaling up availability of over 20,000 veterinary professionals.
  • Launch of a loan-linked capital subsidy scheme to support:
    • Veterinary and para-veterinary colleges
    • Veterinary hospitals
    • Diagnostic laboratories
    • Breeding facilities in the private sector
• Promoting the Orange Economy (Creative Industries)
  • Support to the Indian Institute of Creative Technologies, Mumbai to set up AVGC (Animation, Visual Effects, Gaming and Comics) Content Creator Labs in:
    • 15,000 secondary schools
    • 500 colleges
• Education Infrastructure and Inclusion
• Creation of five University Townships near major industrial and logistics corridors through a challenge-based approach.
• Establishment of one girls’ hostel in every district through VGF or capital support to improve access to education.
• Tourism and Hospitality Development
  • Skill Development in Tourism
    • National Council for Hotel Management and Catering Technology to be upgraded to the National Institute of Hospitality.
    • Pilot scheme to upskill 10,000 tourist guides at 20 sites through a 12-week standardized training programme in hybrid mode, in collaboration with an IIM.
  • Digital Tourism Infrastructure
    • Creation of a National Destination Digital Knowledge Grid to digitally document all cultural, spiritual, and heritage sites.
  • Heritage and Cultural Tourism
    • Development of 15 major archaeological and heritage sites—including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace—into experiential cultural destinations.
• Sports Development
  • Launch of the Khelo India Mission to transform India’s sports ecosystem over the next decade.

Third Kartavya: Sabka Saath, Sabka Vikas through Targeted Inclusion

• The Third Kartavya focuses on inclusive growth, ensuring that farmers, vulnerable groups, and lagging regions actively participate in India’s development process.
• Increasing Farmer Incomes
  • Water Resources and Rural Assets - Integrated development of 500 reservoirs and Amrit Sarovars to strengthen irrigation, water security, and rural livelihoods.
  • High-Value Agriculture Push - Government support for high-value crops such as coconut, sandalwood, cocoa, and cashew, particularly in coastal regions.
    • Launch of a Coconut Promotion Scheme to increase production and productivity.
  • Digital Agriculture: Bharat-VISTAAR - Launch of Bharat-VISTAAR (Virtually Integrated System to Access Agricultural Resources).
    • A multilingual AI-based platform integrating AgriStack portals with ICAR’s agricultural practice packages to improve farm decision-making.
• Empowering Divyangjan
• Launch of Divyangjan Kaushal Yojana to enable persons with disabilities to access task-oriented and process-driven roles.
• Focus sectors include IT, AVGC, Hospitality, and Food & Beverages.
• Strengthening Mental Health and Trauma Care
  • Establishment of NIMHANS-2 in North India.
  • Upgradation of National Mental Health Institutes at Ranchi and Tezpur as Regional Apex Institutions.
• Focus on Purvodaya States and the North-Eastern Region
  • Regional Infrastructure and Mobility - Development of an integrated East Coast Industrial Corridor with a key node at Durgapur.
    • Creation of five tourism destinations across the five Purvodaya States.
    • Deployment of 4,000 e-buses to improve sustainable public transport.
  • Buddhist Circuit Development - Launch of a scheme to develop Buddhist Circuits across Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura.
• Fiscal Support to States: 16th Finance Commission
  • Allocation of ₹1.4 lakh crore to States in FY 2026-27 as Finance Commission grants, in line with the recommendations of the 16th Finance Commission.