The presentation of the Union Budget 2026 by Finance Minister Nirmala Sitharaman on February 1, 2026, marks a pivotal moment in India’s economic trajectory. With the global economy navigating a complex landscape of supply chain shifts and high-interest rates, India’s "Budget of Resilience" seeks to solidify its position as the fastest-growing major economy. This budget is not merely a statement of accounts; it is the strategic blueprint for the "Amrit Kaal," specifically targeting the milestone of Viksit Bharat by 2047 . The government has doubled down on its four pillars: the Poor ( Garib ), the Youth ( Yuva ), the Farmers ( Annadata ), and Women ( Nari Shakti ). With a projected GDP growth of 7.2% for FY 2026-27 and a resolute commitment to bringing the fiscal deficit down to 4.5% , the 2026 Budget balances aggressive capital expenditure with fiscal prudence. Here is an exhaustive 2,000-word breakdown of the policies, data, and real-world impacts of Union Budget 2026. 1. Macroeconomic Stability: The 4.5% Deficit Target The Finance Minister began her record-breaking 8th consecutive budget speech by highlighting India’s macroeconomic strength. Despite global headwinds, India's inflation remains within the 4% target band, and the banking sector’s NPA (Non-Performing Assets) levels are at a decadal low. The government has successfully maintained its glide path for fiscal consolidation. For FY27, the Fiscal Deficit is pegged at 4.5% , down from 4.9% in the previous year. This reduction is critical for maintaining India’s credit rating and ensuring that government borrowing does not crowd out private investment. Fiscal Balance: The Union Budget 2026 prioritizes fiscal consolidation, aiming for a 4.5% deficit to ensure long-term economic stability. 2. Infrastructure: The ₹12.5 Lakh Crore Powerhouse Infrastructure continues to be the primary engine of India’s economic growth. For 2026, the government has increased the Capital Expenditure (Capex) outlay by 11.1% to ₹12.5 Lakh Crore . This massive allocation is channeled through the PM Gati Shakti Master Plan , focusing on three major railway corridors: Energy, Mineral, and Cement Corridors: To reduce logistics costs for heavy industries. Port Connectivity Corridors: To boost export-led growth. High Traffic Density Corridors: To modernize passenger travel via more Vande Bharat and Amrit Bharat trains. Real-World Example: The logistics cost in India currently stands at 13-14% of GDP. The government aims to bring this down to 8% by 2030. The 2026 Budget accelerates the completion of dedicated freight corridors that will allow a manufacturer in Ludhiana to reach a port in Mumbai in under 24 hours, compared to 3 days previously. 3. The New Tax Regime: Relief for the Middle Class Perhaps the most anticipated section of the budget was the revision of the New Tax Regime . To boost consumption and provide relief to the salaried class, the Finance Minister announced a significant increase in the Standard Deduction . Standard Deduction: Increased from ₹50,000 to ₹75,000 for salaried employees under the New Tax Regime. Revised Tax Slabs 2026: ₹0 - ₹3 Lakh: Nil ₹3 - ₹7 Lakh: 5% ₹7 - ₹10 Lakh: 10% ₹10 - ₹12 Lakh: 15% ₹12 - ₹15 Lakh: 20% Above ₹15 Lakh: 30% Data Insight: These changes mean that a salaried individual can now save up to ₹17,500 in taxes annually. This move is expected to put an additional ₹25,000 Crore of disposable income into the hands of the middle class, stimulating demand for consumer durables and housing. Middle-Class Boost: The revised tax slabs and increased standard deduction in the 2026 Budget provide significant disposable income relief. 4. Agriculture: Digital Public Infrastructure (DPI) for Farmers The "Annadata" (Farmers) are at the heart of the 2026 Budget. The government has set a record Agricultural Credit Target of ₹22 Lakh Crore . The biggest shift, however, is technological. The budget allocates ₹5,000 Crore for the rollout of Digital Public Infrastructure (DPI) for Agriculture . This will include: Digital Crop Survey: Mapping of all crops in 400 districts. Jan Samarth-based Kisan Credit: Streamlining loan approvals through digital identities. Natural Farming: 1 Crore farmers will be transitioned to natural farming over the next two years, supported by 10,000 Bio-Input Resource Centres. Real-World Example: A farmer in Vidarbha will now be able to access weather-based crop insurance and a formal bank loan within minutes on their smartphone, bypassing the local moneylender and the "middleman" system that has historically drained rural wealth. 5. Green Energy: The Path to Net Zero Aligning with the "Panchamrit" goals, the 2026 Budget provides a massive impetus to green energy. PM Surya Ghar Muft Bijli Yojana: The scheme aimed at providing 300 units of free electricity to 1 Crore households through rooftop solar has received an additional ₹10,000 Crore outlay. Green Hydrogen Mission: Allocation increased to ₹1,200 Crore to foster industrial decarbo