Union Budget 2026 Session to Begin on January 28: Key Expectations

Parliament’s Budget Session for 2026 will start on January 28, 2026. The session runs till April 2, 2026. Union Minister Kiren Rijiju announced this schedule after President Droupadi Murmu approved the summoning of both Houses. The session have two phases. First phase ends on February 13, 2026. Parliament meet again from March 9, 2026.

Reports from PTI said that Finance Minister Nirmala Sitharaman will present the Budget on February 1. Union Minister Rijiju says such decisions are taken by Cabinet Committee on Parliamentary Affairs at right time. This timetable is important for citizens and markets. It set the window for Economic Survey, Budget speech, Finance Bill, and full cycle of parliamentary approval for spending and taxation.

What happens during a Budget Session

The Budget Session begin with President’s address to the joint sitting of both Houses. After this, Parliament takes up debate on policy and government’s agenda. The Economic Survey table in Parliament before Budget. It is government’s official review of economy and policy challenges. It also frames context for Budget proposals. After Budget speech, Parliament debates spending plans and tax changes.

The break between two phases supports detailed scrutiny of ministry spending through the standing committee process.

The economic backdrop for Budget 2026

Budget 2026 comes with two strong macro signals. Retail inflation for December 2025 stands at 1.33% year on year. Reuters reports that inflation stays below RBI target band for fourth month in row. Growth expectations remain firm. RBI revised its FY 2025–26 GDP growth forecast to 7.3% in December 2025 policy cycle, as reported by Indian business media.

Fiscal math shapes Budget choices. Government data for April to November 2025 show fiscal deficit at 62.3% of full-year estimate, with deficit value near ₹9.8 trillion, as report in Reuters feed. These facts set stage for Budget 2026. Government must support growth while keeping tight grip on deficit and debt.

Expectation one: keep the capex engine running

Public capital expenditure has been the government’s core growth lever. Roads, rail, ports, airports, and urban projects drive demand for steel, cement, equipment, and jobs.

The first expectation is continuity. Capex must remain high. It must focus on projects with high execution quality. It must reduce logistics cost and raise productivity.

Railways remain a headline sector in this narrative. Industry voices expect spending on capacity expansion, signalling upgrades, and safety systems such as Kavach. Media reports already place railways in the list of core Budget focus areas.

Expectation two: fiscal discipline with clean reporting

Markets price India on credibility. That credibility comes from clear targets and clean reporting.

The second expectation is a fiscal path that aligns revenue, spending, and borrowing. The government has set a fiscal deficit target for FY 2025-26. The Budget must show how the next year stays on a consolidation path, even with high capex.

This requires strong tax administration and stable policy. It also requires fewer off-budget moves and clear subsidy budgeting.

Expectation three: income tax clarity and a smoother transition to the New Income Tax Act

Budget 2026 sits close to a major legal change. The New Income Tax Act, 2025 is part of the public policy conversation for FY 2026–27. Taxpayers also seek relief and simplicity. News coverage has focused on middle-class expectations and on measures that raise disposable income.

TDS reform sits at the centre of this demand. EY has called for a simpler TDS structure and smoother implementation support for the new law framework.

Expectation four: MSME credit and bank-led funding for startups

MSMEs create jobs and support manufacturing output. Their core pain point remains credit access and working capital stress.

Budget 2026 must strengthen credit guarantee frameworks and reduce friction in formal lending. It must also support faster payments across supply chains and public procurement systems.

Startups have raised a related demand. Media reports show founders seeking stronger incentives, simpler compliance, and easier access to credit, with a focus on early-stage funding.

Expectation five: climate, clean mobility, and domestic manufacturing depth

India’s energy transition requires large investment. The Budget must shape incentives that support domestic manufacturing, reduce import risk, and improve execution.

The EV sector has made a specific point. Industry voices have flagged dependence on imported rare-earth components used in motors. They have asked for recognition and support for magnet-free motor technologies within fiscal frameworks.

Climate policy also needs an execution lens. Reports on Budget expectations have called for investable frameworks that unlock private capital and support long-term climate investment.

Expectation six: healthcare capacity and pharma competitiveness

Healthcare expectations focus on public health spending and primary care capacity. Industry voices have called for higher spending on preventive care, mental health, research, and training.

Pharma expectations add a tax angle. Coverage of sector demands includes calls for GST rate rationalisation on key raw materials to address inverted duty issues, and support for domestic API capacity.

Expectation seven: housing and urban affordability

Housing has moved from a luxury-led cycle to a value-led cycle in many cities. Sector voices have asked for measures that lift affordability for mid-income buyers, with tax support and urban infrastructure spending.

This has a wider economic effect. Housing demand supports construction jobs and small contractors. It also supports demand for building material and home goods.

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