Budget 2026-27 LIVE: Operation Sindoor: Major hike in defence spending

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 

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. 

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.

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.

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. 

'This Budget is faceless, baseless, and visionless': TMC MP Abhishek Banerjee

On Union Budget, TMC MP Abhishek Banerjee said, “You all were there in the House, and the Union Finance Minister spoke for 1 hour 25 minutes. In this entire time, West Bengal was not mentioned even once. This Budget also didn’t mention youth, farmers, or employment... This Budget is faceless, baseless, and visionless.”

Congress's Jairam Ramesh on Budget: 'Totally lacklustre'

On Union Budget 2026, Jairam Ramesh, Congress's General Secretary in-charge Communications, said, "While the documents need to be studied in detail, it is clear after 90 mins that Budget 2026/27 falls woefully short of the hype that was generated about it. It was totally lacklustre. The speech was also non-transparent since it gave no idea whatsoever of budgetary allocations for key programmes and schemes."

'Progressive Budget': Scindia

On Union Budget, Union Minister Jyotiraditya Scindia says, "It is a progressive Budget that focuses on every sector of the Indian economy. It is a Budget for every citizen. Particularly, the areas of telecom and DoNEAR have received strong impetus in this Budget. It will empower and power India. A lot of institutions and waterways have been allocated to the North East."

Akhilesh Yadav slams Budget 2026 as BJP's

On Union Budget, Samajwadi Party MP Akhilesh Yadav says, "This Budget is beyond the understanding of the poor and those who live in the villages. No jobs or employment have been given in this Budget. BJP's budget is only for 5 per cent of the people in the country..."

Yogendra Yadav: Budget allocation for agriculture slashed

Political activist Yogendra Yadav: "Budget allocation for Agriculture and Allied activities slashed from 3.38% last year (2025-26) to just 3.04% in this budget for 2026-27. One of the biggest cuts."