Union Finance Minister Nirmala Sitharaman addresses a press conference after the presentation of the 'Union Budget 2026-27', in New Delhi on February 1. Photo PTI
Budget 2026-27 LIVE: Operation Sindoor: Major hike in defence spending
Allocation rises to 11 per cent of GDP as the government focuses on military modernisation
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 9:35 PM IST
Budget: Nothing for farmers, say Punjab govt, Haryana Oppn
Punjab, a non-BJP ruled state, and the Opposition in Haryana on Sunday expressed disappointment over the Union Budget, saying the Centre has once again failed to live up to the farmers' expectations.
Punjab Chief Minister Bhagwant Mann said the budget neither had any announcement regarding the minimum support price for farmers, nor did it provide any relief for industry and in taxes. "The central government's budget once again fell short of Punjab's expectations. This budget made no concrete announcements on MSP for farmers...youth.""No concrete steps were taken in this budget to strengthen Punjab's economy. As always, Punjab and Punjabis were treated step-motherly. The people of Punjab are hardworking and enthusiastic. Together, we will ensure Punjab stands firmly on its feet again," said Mann in a post on X in Punjabi.
Punjab Finance Minister Harpal Singh Cheema on Sunday said the budget once again ignored the interests of farmers in Punjab and Haryana and failed to address key concerns of agrarian states. Cheema said there was no increase in the allocation for the Agriculture Infrastructure Fund and no concrete steps were taken to strengthen market and mandi infrastructure.
Partap Singh Bajwa, who is the leader of the opposition in the Punjab assembly, also said there was no relief for Punjab farmers and nothing was announced for the state's youth in the Budget.
Congress general secretary Randeep Singh Surjewala also attacked the Budget and wrote, "Haryana is nowhere to be seen in #Budget2026!"
- 1 Feb 2026 9:19 PM IST
Budget for common people, don't need certificate from Opposition: BJP
The BJP on Sunday hailed the Union Budget as a "step forward" towards making India developed as it slammed the opposition parties for calling it "lacklustre" and "hollow", saying the government does not need any certificate from them because people trust Prime Minister Narendra Modi.
The BJP's retort came after the opposition parties expressed dissatisfaction with the Budget, with the Congress alleging that it fell woefully short of the hype generated around it.
While Leader of Opposition in the Lok Sabha, Rahul Gandhi, called the Budget "blind to India's real crises", Congress MP and party general secretary (organisation) K Venugopal said it's "completely hollow".
Other opposition MPs alleged that while the Budget did not have any announcements for the common people, it also failed to address basic issues like education, healthcare and unemployment.
Hitting back, Union minister Piyush Goyal alleged that the opposition parties start playing the same record after every budget. "You tell me what is wrong. Don't they want progress of our MSME sector, increase production capacity in the country, ensure a bright future of those in the cattle rearing and fishing sectors, new jobs, skill development... What is their problem?" he said while replying to queries from reporters at Parliament House complex.
- 1 Feb 2026 9:17 PM IST
Union Budget has 'ignored' Andhra's funding needs: YSRCP
The opposition YSRCP in Andhra Pradesh on Sunday said the Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman failed to allocate adequate funds to the state, particularly for key infrastructure and rural development.
YSRCP Parliamentary Party leader YV Subba Reddy said allocations for the Polavaram irrigation project were reduced and the project's height was limited to 41.15 metres, creating serious difficulties for the state.
"The Union Budget 2026-27 has failed to provide adequate allocations for Andhra Pradesh, especially for critical infrastructure and rural development," Reddy said, addressing a press conference in New Delhi. He said the primary highlight of the Union Budget was the effort to reduce the fiscal deficit, describing it as a positive development for the country.
The member of Rajya Sabha said that measures taken in the 2026-27 Budget to bring down the fiscal deficit from 4.5 percent to 4.3 percent reflected a clear fiscal consolidation approach.
- 1 Feb 2026 7:56 PM IST
CREDAI unhappy as nothing concrete for affordable housing in Budget
Realtors' apex body CREDAI on Sunday expressed disappointment that the Union Budget did not provide any incentives to boost demand and supply of affordable housing.
CREDAI, which represents around 15,000 real estate developers from across the country, warned that the share of affordable housing in the overall launch of new homes would decline further.
However, the association welcomed the government's focus on creation of infrastructure, which would benefit the Indian property sector. Commenting on the Budget, CREDAI national president Shekhar Patel said the association is "deeply disappointed that the Budget offers nothing concrete for affordable housing." With the current outdated definition of affordable housing, he said the affordable housing segment’s share could decline further from 18 per cent to nearly 12 per cent of total housing supply.
Realtors bodies CREDAI and NAREDCO have been demanding the revision in the definition of affordable housing by enhancing the price cap of Rs 45 lakh to Rs 80-90 lakh.
- 1 Feb 2026 7:55 PM IST
'Seems to have missed the ball': Tharoor slams Budget with cricketing analogy
Senior Congress leader Shashi Tharoor on Sunday used a cricketing analogy to express his disappointment with the Union Budget, saying Finance Minister Nirmala Sitharaman "seems to have missed the ball".
In an interview with PTI at the news agency's headquarters, Tharoor said Sitharaman's Budget speech seemed to have "lots of subheadings but very few specifics", and was "completely short" of an overall vision. As a Kerala MP, Tharoor said he had nothing to be happy about in this Budget.
Tharoor asserted that the biggest unanswered question remains jobs, noting that there was little in the Budget speech to indicate how employment would be generated.
Asked whether the finance minister has "hit it out of the park" or "missed the ball completely and been stumped," Tharoor said, "I don't know if she's been stumped yet, but she certainly seems to have missed the ball. In one or two places, she may have got edges, but I'm not quite sure that we've got anything off the meat of the bat so far."
- 1 Feb 2026 7:53 PM IST
PSU bank stocks tumble; Bank of India tanks over 8 pc
PSU bank stocks ended sharply lower on Sunday, in-line with a steep decline in the equity market on the Budget day.
Shares of Bank of India tanked 8.41 per cent, Indian Bank tumbled 7.30 per cent, Bank of Maharashtra dropped 7.21 per cent, Bank of Baroda declined 6.60 per cent and Union Bank of India plunged 6.31 per cent on the BSE.
The stock of State Bank of India dived 5.61 per cent, Canara Bank lost 4.38 per cent, Indian Overseas Bank (3.40 per cent), Punjab National Bank (2.92 per cent), Central Bank of India (2.67 per cent) and UCO Bank (2.19 per cent).
The BSE PSU Bank index tumbled 285.43 points or 5.60 per cent to 4,807.19. Reversing early gains, the 30-share BSE Sensex tumbled 2,370.36 points or 2.88 per cent to slide below the 80,000-mark at 79,899.42 in afternoon trade after Finance Minister Nirmala Sitharaman on Sunday proposed an increase in the Securities Transaction Tax (STT) on derivatives.
The benchmark gauge ended at 80,722.94 down 1,546.84 points or 1.88 per cent. State Bank of India was the biggest laggard among the 30-share BSE Sensex firms.
- 1 Feb 2026 7:51 PM IST
MHA gets Rs 2.55 lakh crore in Budget; IB sees massive hike in allocation
The Union Budget 2026-27 on Sunday allocated over Rs 2.55 lakh crore to the Ministry of Home Affairs, reflecting an increase of around 9.44 per cent from the budget estimates of over Rs 2.33 lakh crore provided to it in 2025-26.
The majority of the funds in the Budget announced by Finance Minister Nirmala Sitharaman for the ministry amount to Rs 1.73 lakh crore, with around 68 per cent allocated under the head 'Police'. This includes funding for the Intelligence Bureau, Central armed police forces such as the CRPF, BSF, ITBP, and CISF, Border development programs, and funds for the police forces in Delhi and Jammu and Kashmir, among other areas.
An important aspect is a massive increase in the Capital Expenditure of Rs 4,693.28 crore in the Budget allocation for the ministry under the Police Head, from Rs 16579.19 crore in 2025-26 to Rs 21272.47 crore this Budget, indicating the government's inclination to invest in modernisation and infrastructure projects related to forces.
The Union Budget 2025-26 had allocated over Rs 2.33 lakh crore (budget estimates) to the ministry helmed by Union Home Minister Amit Shah.
The Intelligence Bureau (IB), responsible for internal intelligence, has been allocated Rs 6,782.43 crore in 2026-27, reflecting a massive 63 per cent increase compared to the Rs 4,159.1 crore it received in the previous budget, according to the revised estimates.
- 1 Feb 2026 7:50 PM IST
Centre expects Rs 3.16 lakh cr dividend from RBI, banks in FY27
The Centre expects Rs 3.16 lakh crore in dividends and surpluses from the Reserve Bank of India, nationalised banks, and financial institutions in 2026-27, up about 3.75 per cent over the current fiscal.
During the current fiscal year, as per the Revised Estimate (RE) presented in Parliament, the central government is expected to get about Rs 3.05 lakh crore, significantly higher than Rs 2.56 lakh crore estimated in the February 2025 Budget.
Budget documents further showed that dividends from public sector enterprises and other investments are estimated at Rs 75,000 crore, up from Rs 71,000 crore in the current fiscal.
Dividend and Reserve Bank's surplus transfers fall under the non-tax revenue category.
In all, the Centre expects Rs 6.66 lakh crore as non-tax revenue next fiscal, lower than 6.67 lakh crore in 2025-26.
The revenue from taxes has been pegged at Rs 28.66 lakh crore, up 7.18 per cent from Rs 26.74 lakh crore in 2025-26.
- 1 Feb 2026 7:46 PM IST
Budget will increase inflation, create unemployment: Kejriwal
AAP national convenor Arvind Kejriwal on Sunday said the Union Budget will increase inflation and create unemployment.
Speaking to reporters in Goa's Kavlem village, he also said there was nothing for Goa in the Budget presented in Parliament by Union Finance Minister Nirmala Sitharaman. "The central government has forgotten Goa," he claimed.
"From a national perspective, the Budget will increase inflation and also create unemployment. This Budget has not suggested any steps to address inflation and unemployment," Kejriwal said.
He also slammed the BJP for "destroying" Goa, adding that people are afraid to speak about issues plaguing the state. "Goa is looking for an alternative because Congress and BJP are together. Congress is like a feeder unit of BJP. AAP is emerging as an alternative in Goa," he said with regards to the 2027 Assembly polls.
- 1 Feb 2026 7:13 PM IST
Bourses feel STT hike effect on markets to subside; NSE says no impact on IPO
Markets are used to tweak in taxation and the adverse impact of the steep hike in securities transaction tax (STT) will not last long, leading bourses said on Sunday.
NSE, the largest stock exchange, feels that the move to curb volumes will not have any impact on its upcoming initial public offering (IPO) plans, its Managing Director and Chief Executive Ashish Kumar Chauhan said.
Rival BSE’s Managing Director and Chief Executive S Ramamurthy said markets react in a “bit adverse” way whenever any such changes are proposed by the government and exuded confidence that gradually things will settle down.
The proposal to increase the STT on futures and options will also encourage long-term equity investments, he said, adding that it may also lead to a shift of money from the arbitrage funds to banks' fixed deposits as the returns one stands to make get on par.
The moves to hike the STT on the F&O segment was attributed as one of the key reasons that led to a sharp correction in the equity markets after the Budget speech by Union Finance Minister Nirmala Sitharaman.
Notably, studies by Sebi show that over 90 per cent of retail investors’ trades in the F&O segment lead to losses, and the markets regulator has also taken steps to reduce the volumes in the past.
Sitharaman announced the STT hikes, saying the move is aimed to “provide reasonable course correction” in the F&O segment in the capital market and generate additional revenues for the government.
Accordingly, she announced a proposal to raise the STT on futures to 0.05 per cent from the present 0.02 per cent and STT on options premium and exercise of options to be raised to 0.15 per cent from the present rate of 0.1 per cent and 0.125 per cent, respectively.
