India’s Finance Minister, Nirmala Sitharaman, is set to present the India Union Budget for 2026-27 in Parliament on February 1. This marks her ninth consecutive budget presentation as India’s economy is projected to grow by 7.3 percent in the current financial year, despite ongoing geopolitical challenges.
Preparation of the India Union Budget
The preparation of the Union Budget is a meticulous process involving various ministries, senior bureaucrats, and ministers. It culminates in the presentation of the Annual Financial Statement to Parliament. This highly confidential exercise begins months in advance with consultations between the finance ministry and key stakeholders, including central ministries, state governments, industry bodies, economists, and representatives from agriculture, MSMEs, and social sectors.
Each ministry submits detailed estimates of their financial requirements to the finance ministry, where these demands are scrutinized. The finance ministry balances competing priorities such as infrastructure spending, welfare schemes, defense, and subsidies while considering macroeconomic indicators like GDP growth, inflation, and the fiscal deficit.
Parallel to expenditure planning, the Department of Revenue develops taxation proposals, including adjustments to income tax, corporate tax, customs duties, and GST-related measures. The finance minister holds a series of meetings with senior officials to align the budget with the government’s broader agenda.
The Economic Survey, prepared by the Department of Economic Affairs, is finalized separately and provides an assessment of the economy. It is tabled a day before the budget presentation. The preparation phase concludes with the traditional ‘halwa ceremony,’ marking the completion of budget drafting. Following this, officials enter a ‘lock-in’ period to maintain confidentiality until the budget is presented.
The Union Budget will be presented at 11 am on February 1, a change implemented in 2017 to secure parliamentary approval before the financial year starts on April 1. The budget session began on January 28 and will continue until April 2. The session includes a break between phases, and the budget presentation will be followed by detailed discussions in both Houses of Parliament.
All budget documents will be available digitally through the Union Budget Mobile App and the official website, continuing the paperless trend of recent years. This digital approach ensures accessibility in both English and Hindi.
Published in SouthAsianDesk, January 29th, 2026
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