Union Finance Minister Nirmala Sitharaman presents the Union Budget 2026 in the Lok Sabha on Sunday (February 1). Photo: Sansad TV (Screengrab)
Budget 2026-27 LIVE: Kerala, Karnataka and West Bengal cry foul over allocations
Three of the Opposition-ruled states are saying they have been sidlined
Union Finance Minister Nirmala Sitharaman on Sunday (February 1) presented her ninth straight Budget and said the Income Tax Act, 2025 will be implemented from April 1 and rules and tax returns forms will be notified shortly.
Earlier on Sunday morning, Sitharaman called on President Droupadi Murmu before presenting Budget 2026-27 in the Lok Sabha.
As per established tradition, the finance minister met the President at the Rashtrapati Bhavan before heading to Parliament.
Before going to the Rashtrapati Bhavan, Sitharaman posed with her Budget team in front of her office at Kartavya Bhavan. Wearing a magenta silk saree, she was holding a tablet in a red pouch with the national emblem, along with the Minister of State and all six Secretaries in her ministry.
Union Minister for Finance and Corporate Affairs Sitharaman, along with Minister of State for Finance Pankaj Chaudhary and senior officials of the Ministry of Finance, called on the President at Rashtrapati Bhavan before presenting the Union Budget.
Following the meeting, she headed for a Cabinet meeting that formally approved the Budget for 2026-27.
Sitharaman continued with the tradition she set in 2019, carrying the Budget speech in a 'bahi-khata', which she used after dropping the briefcase tradition.
Here is the top, trending news of Sunday, February 1, 2026, including Budget 2026-27, Indian politics, states' politics, geopolitics, federal issues, economics, development issues, sports, entertainment, and so on.
Read updates below.
Live Updates
- 1 Feb 2026 3:18 PM IST
Why markets bled on Budget Sunday
The day began with President Droupadi Murmu offering dahi cheeni (curd and sugar) to Finance Minister Nirmala Sitharaman — a traditional good-luck ritual ahead of the Union Budget. But while the sweet start may have worked wonders for some sectors, the markets found the taste rather sour.
Making history, this year’s Budget was presented on a Sunday — the first such instance in recent memory. Since the Budget session was on, trading too was allowed for the full day.
- 1 Feb 2026 3:15 PM IST
No benefit for Karnataka from Budget 2026: DK Shivakumar
Karnataka Deputy Chief Minister D K Shivakumar on Sunday (February 1) said that there was no benefit for the state from the Union Budget presented by Finance Minister Nirmala Sitharaman in the Parliament.
He, however, said that he is yet to go through the budget in detail.
"There is no benefit for our state from the central budget. I was observing it. They have named a programme after Mahatma Gandhi now (after repealing the MGNREGA act that was named after Gandhi) ," Shivakumar said.
Stating that there were expectations for Bengaluru from the central budget, Shivakumar, who is also the Minister in-charge of the city's development, said that Prime Minister Narendra Modi had called it a "global city", "but what has the central government done for it." He further pointed out at the troubles that sugar factories, especially those from the cooperative sector, face, due to alleged lack of decisions or measures by the central government to help them. - 1 Feb 2026 3:10 PM IST
Repackaged Budget sops for Bengal irk state players: 'Old wine in new bottle'
For poll-bound West Bengal, the Union Budget 2026 came as a big disappointment, with two of the three schemes announced for the state on Sunday (February 1) being merely repackaged. Both the state's ruling Trinamool Congress (TMC) and the Congress, one of the Opposition parties, criticised the financial document.
In her presentation, Union Finance Minister Nirmala Sitharaman proposed a dedicated 1,850-kilometre (km)-long freight corridor connecting Dankuni in southern Bengal with Surat in Gujarat to support logistics and freight movement.
Incidentally, former railway minister Suresh Prabhu had proposed in the 2016–17 Railway Budget a roughly 2,000-km rail corridor from Dankuni to Palghar in Maharashtra in a bid to link major industrial centres across Bengal, Jharkhand, Odisha, Chhattisgarh, Maharashtra, Gujarat and Madhya Pradesh.
In effect, Sitharaman’s new announcement merely extends the already proposed corridor by about 150 km north of Palghar, with no change whatsoever in the Bengal segment.
- 1 Feb 2026 3:05 PM IST
Budget 2026 | The same old grouse: Kerala feels Left out
The Union Budget 2026–27 has projected high-speed rail as a cornerstone of India’s next phase of infrastructure-led growth, announcing seven corridors that the Centre says will function as “growth connectors” between major economic regions.
Yet Kerala finds no mention in this national blueprint, a silence that has renewed questions about the state’s place in India’s transport future and sharpened an already fraught relationship between the Left Democratic Front (LDF) government and the Union government.
The Budget silence on Kerala’s rail connectivity comes against the backdrop of the state government’s proposal for a Regional Rapid Transit System (RRTS), a semi-high-speed rail network designed for Kerala’s specific conditions—short distances between cities, high population density and limited land availability.
- 1 Feb 2026 2:12 PM IST
Rahul on Budget: 'I will speak tomorrow in Parliament'
Leader of Oppositon in Lok Sabha and Congress leader Rahul Gandhi, when asked about Union Budget, said, "I will speak tomorrow, using the platform provided by Parliament."
- 1 Feb 2026 2:06 PM IST
Kerala sees limited gains in Union Budget,; leaders express dissatisfaction
Expectations had been running high across Kerala's political spectrum -- from the ruling LDF to the Opposition Congress-led UDF and even leaders within the state BJP, on at least two major Union Budget announcements for the state-- a high-speed rail corridor and the sanctioning of an AIIMS.
Neither materialised on Sunday, when Union Finance Minister Nirmala Sitharaman presented the budget for 2026-27.
Kerala found little else to cheer in the Budget presented by Sitharaman, with several long-anticipated projects missing from Centre's plans. The state was not included in the proposed high-speed rail corridors, while neighbouring Tamil Nadu, Karnataka and Telangana featured in the network expansion.
Expectations were driven by the upcoming Assembly elections, with the BJP seeking to make inroads in a state largely dominated by the CPI(M)-led LDF and the Congress-led UDF.
However, the Budget did include Kerala in a broader industrial initiative.
A scheme for Rare Earth Permanent Magnets, launched in November 2025, proposes support for mineral-rich states including Odisha, Kerala, Andhra Pradesh and Tamil Nadu. The plan envisions dedicated Rare Earth Corridors to boost mining, processing, research and manufacturing in the sector.
In the environmental sector, the Centre announced the establishment of "Turtle Trails" along key nesting sites in coastal regions of Odisha, Karnataka and Kerala, aimed at conservation and eco-tourism.
There was also attention on Thiruvananthapuram Corporation, where the BJP recently came to power, ending over four decades of Left rule. While the Budget was expected to carry a notable urban-focused announcement linked to the civic body, no major project specifically targeting the corporation was outlined.
While the state BJP leaders said they would react after studying the budget, the ruling Left and the Opposition UDF expressed dissatisfaction for not announcing major projects for the state.
Industries Minister P Rajeev said that following recent discussions on the high-speed railway line, there was an impression that Kerala would get the fast mobility project in the Budget.
"In spite of Kerala being the first to submit a proposal to the Centre, it was not considered," he said.
Rajeev said that when the state had earlier decided to implement a similar project, permission was denied by the Centre.
"Now the Centre has announced the project, and not including Kerala amounts to discrimination," he said.
On AIIMS, he said the Centre had directed the state to suggest three locations, following which it was asked to shortlist one.
"Even though land under the Industries Department, which was in high demand, was handed over to the Health Department at Kinalur for AIIMS, it was not sanctioned. The NDA government has announced several AIIMS before, but Kerala has not been allotted one," he said.
Rajeev also referred to the Rare Earth corridor announced by the state, and expressed concern over proposed amendments that would allow the Centre to acquire Rare Earth resources bypassing the state.
"It is not clear whether the announcement is aimed at taking Rare Earth resources to other places. This needs to be examined, as Rare Earth resources currently lie with the states," he said.
From the first impression, the state appeared to have been "neglected" in the Budget, he added.
CPI(M) MP John Brittas told reporters in New Delhi that, considering the upcoming Assembly elections, there was an expectation that Kerala would at least receive some allocation.
He said the Kerala Finance Minister K Balagopal had raised 29 key demands after meeting Sitharaman ahead of the Budget.
"However, it is unfortunate that nothing was granted to Kerala, either at the micro or macro level," Brittas said.
He alleged that the BJP government had tried to mislead the people of Kerala by propagating the high-speed rail project using 'Metroman' E Sreedharan.
"The state government had doubts about it, as the announcement was made by Sreedharan, whereas such a project should be announced by the Union Railway Minister," he said.
RSP and UDF MP N K Premachandran said the Budget failed to address key issues related to unemployment and investment in the country.
"Seven high-speed rail corridors were announced, but Kerala was left out. Sreedharan had announced that Kerala would get the project, but it was not included in the Budget," he said.
He said the failure to allot an AIIMS to Kerala showed neglect towards the state.
Premachandran said the announcement of a National Corridor for Rare Earth Minerals was a welcome move and was expected to help Kerala’s economy.
He also said the coconut and cashew agriculture assistance schemes announced in the Budget would help farmers, adding that he would comment further after examining the details. PTI
- 1 Feb 2026 2:06 PM IST
Budget places infra at heart of India's journey towards 'Viksit Bharat2047': Nitin Gadkari
Union Budget for 2026-27 places infrastructure at the heart of India’s journey towards Viksit Bharat2047, Union Road Transport and Highways Minister Nitin Gadkari said on Sunday.
Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026-27 in the Lok Sabha.
"With a clear focus on connectivity, manufacturing depth, and regional balance, the Budget outlines a decisive push to build world-class, future-ready infrastructure," Gadkari said in a social media post on X.
He said initiatives announced in the Budget reflect a clear vision: infrastructure not just as physical assets, but as an enabler of resilience, opportunity, and global competitiveness.
The minister also said the Budget for 2026-27 outlines a decisive roadmap centred on farmers, youth, and MSMEs, strengthening the foundations of inclusive growth, innovation, and capital investment as India progresses towards.
- 1 Feb 2026 2:05 PM IST
Budget makes decisive investment in India' health and innovation future: Biocon chief
Biocon chief Kiran Mazumdar-Shaw on Sunday said the Union Budget makes a decisive investment in India's health and innovation future, by placing biopharma among the seven strategic frontier sectors and launching "Biopharma Shakti" with an outlay of Rs 10,000 crore over five years.
Finance Minister Nirmala Sitharaman on Sunday proposed Rs 10,000 crore investment in the biopharma sector over the next five years, a move which would give a boost to the country's pharmaceuticals industry.
Biopharmaceuticals, or biologics, are complex medicines manufactured from living organisms, cells, or tissues rather than through chemical synthesis.
"By placing biopharma among the seven strategic frontier sectors and launching Biopharma Shakti with an outlay of Rs 10,000 crore over five years, the Union Budget makes a decisive investment in India's health and innovation future," Shaw posted on 'X.' As India's disease burden shifts toward cancer, diabetes and autoimmune disorders, biologics and biosimilars will be central to improving longevity and quality of life, she said.
"This initiative--spanning manufacturing scale-up, global-grade regulation, new NIPER institutions and a nationwide clinical trials network--can firmly position India as a global biopharma manufacturing hub," she added.
- 1 Feb 2026 2:03 PM IST
Highlights of Union Budget 2026-27
* No change in Income Tax rates
* Securities Transaction Tax (STT) raised on futures and options (F&O) to 0.05 pc and 0.15 pc
* TCS on sale of overseas tour packages slashed to 2 pc
* TCS on overseas education, medical expenses under LRS (Liberalised Remittance Scheme) cut to 2 pc
* New Income Tax Act, 2025, to be implemented from April 1; rules, forms to come soon
* ITR filing date for non-audit businesses extended by a month till August 31
* Tax holiday up to 2047 for any foreign company for providing services globally from data centres in India
* Fiscal deficit pegged at 4.3 pc of GDP in FY27, lower than 4.4 per cent in FY26
* Debt-to-GDP to be cut to 55.6 pc from 56.1 pc in the current fiscal year
* Total Budget size at Rs 53.5 lakh crore
* Govt capital expenditure hiked to Rs 12.2 lakh crore from Rs 11.11 lakh crore in FY26
* Rs 1.4 lakh crore to be devolved to states as tax share
* Net tax receipts estimated at Rs 28.7 lakh crore
* Gross market borrowings estimated at Rs 17.2 lakh crore
* Budget focuses on 3 Kartavyas -- accelerating growth, fulfilling aspirations, and Sabka Sath, Sabka Vikas
* Reform express on track, over 350 reforms rolled out
* Proposes Rs 10,000 crore SME Growth fund to create future champions
* Trust-based systems for Customs, advance ruling validity period extended to 5 years
* High-level committee to increase the services sector contribution to 10 pc by 2047.
- 1 Feb 2026 1:54 PM IST
Mamata slams Union Budget as 'directionless, visionless'
Union Budget 2026-27 directionless, visionless; nothing for common man in it: West Bengal CM Mamata Banerjee in Kolkata.
