Kathmandu — India is set to unveil its national budget for the fiscal year 2026/27 today, with Finance Minister Nirmala Sitharaman preparing to present her ninth consecutive budget in Parliament. Under Article 112 of the Indian Constitution, the central government is required to table the annual budget before the start of each fiscal year, outlining its revenue, expenditure, and policy priorities.

India follows an April–March fiscal calendar, with the financial year beginning on April 1 and ending on March 31 of the following year. In line with long-standing practice, the budget is presented nearly two months before the new fiscal year begins, allowing time for parliamentary debate and administrative preparation. This year’s budget is being closely watched amid expectations of fiscal consolidation, growth support, and relief measures for key economic groups.

In the previous fiscal year, the government announced a total budget size of INR 50.65 trillion. Of this, capital expenditure accounted for INR 11.21 trillion, reflecting the government’s continued emphasis on infrastructure development, while recurrent expenditure stood at INR 39.45 trillion. Indian media reports suggest that this year’s budget could be even larger, driven by higher spending on infrastructure, social welfare, and economic stimulus measures.

Tax policy is expected to be one of the most closely scrutinized aspects of the budget. Last year, the government exempted annual income up to INR 1.2 million from income tax and provided salaried employees with a standard deduction of INR 75,000. Ahead of today’s announcement, stakeholders have been pressing for an increase in the tax-free income threshold from INR 1.2 million to INR 1.4 million, along with a rise in the standard deduction to INR 100,000. Analysts believe some adjustment to tax slabs and rates is likely, aimed at easing the burden on the middle class and boosting consumption.

There is also growing speculation that the government may reduce import duties on gold and silver. Such a move could provide relief to the jewelry industry and help stabilize domestic prices, while also influencing consumer demand and trade dynamics. Any change in precious metal duties is expected to have ripple effects across both formal and informal segments of the market.

Agriculture is another sector expected to receive renewed attention. Stakeholders have called for an increase in the allocation under the Prime Minister’s Kisan Samman Nidhi scheme, under which eligible farmers currently receive INR 6,000 annually. There is strong demand to double this amount to INR 12,000 per year, a move that supporters argue would offer meaningful income support and strengthen rural livelihoods.

In addition, expectations are high that the budget will announce an increase in the Minimum Support Price (MSP) for key crops. An MSP hike would aim to protect farmers from price volatility, encourage production, and reinforce food security, particularly at a time when input costs remain elevated.

Overall, today’s budget is being viewed as a balancing act—between fiscal discipline and economic stimulus, urban tax relief and rural support, and long-term investment and immediate welfare. The policy signals sent through this budget are expected to shape India’s economic trajectory in the coming year, with implications extending beyond its borders.