Budget Expectations Updates: Finance Minister chairs Pre-Budget Consultation meeting with States, Union Territories

Haryana Chief Minister Nayab Singh Saini on Saturday asked the Centre for increased allocations in the Union Budget for FY27 to ensure the development of rural and urban infrastructure as well as agriculture and allied sectors. -- PTI

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on Saturday chaired the meeting on Pre-Budget Consultation with States and Union Territories (with Legislature) for the forthcoming Union Budget 2026-27 in New Delhi.

Along with Union Minister for State for Finance Pankaj Chaudhary, the meeting was also attended by Governor of Manipur; Chief Ministers of Delhi, Goa, Haryana, Jammu and Kashmir, Meghalaya, and Sikkim; Deputy Chief Ministers of Arunachal Pradesh, Madhya Pradesh, Odisha, Rajasthan and Telangana; the Finance Ministers of States/UTs, besides Secretaries of Departments of Economic Affairs, Expenditure, and Revenue, and senior officials of the Ministry of Finance.

Opposition-ruled states like Punjab and Telangana on Saturday demanded additional resources from the Centre in the 2026-27 Budget, and said that the 60:40 cost-sharing under the proposed VB-G RAM G scheme will impose further fiscal burden on already strained resources of the states. -- PTI

The Karnataka government on Saturday urged the Centre to address Karnataka's "shrinking fiscal space" in the Union Budget 2026-27, stating that the state is under mounting pressure due to GST changes, rising social commitments and rapid urbanisation.

Karnataka Revenue Minister Krishna Byre Gowda, on behalf of the state government, handed over a representation to Union Finance Minister Nirmala Sitharaman at the Union Pre-Budget Meeting for 2026-27 in Delhi. -- PTI

The Union Budget 2026 is expected to focus on fiscal deficit control and debt sustainability as part of the government's broader Viksit Bharat roadmap, Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM) said on Saturday.

"The budget is part of the Viksit Bharat roadmap and the drafters will stick to the fiscal deficit. Also, the debt to GDP is the main indicator, so they will stick to that," Dev said on the sidelines of an event organised by the SKOCH Group on macroeconomic indicators. -- ANI

'Budget 2026 is expected to prioritise policy stability over incentives, which is crucial for sustained office demand as companies plan expansions based on long-term confidence rather than short-term tax benefits,' says Utkarsh Kawatra,  CEO and Co-Founder, myHQ by Anarock. He notes that infrastructure growth and the rise of Tier-2 cities are reshaping office locations, with businesses increasingly choosing phased expansion, boosting demand for flexible and managed workspaces that allow scalable, low-risk growth.

Despite strong sector growth, Kawatra says there is a need for formal recognition of flexible offices as a distinct real estate asset class to improve ease of doing business and support evolving work models.

Industry lobby PHDCCI on Friday suggested that the government establish a dedicated Green Bank or Climate Finance Facility to catalyse private capital into green technologies such as renewable energy, energy efficiency, and electric vehicles, as part of its pre-Budget recommendations.

They also suggested that the government should allow the Green Bank, once established, to raise funds via green bonds / pooled instruments. (PTI)

Speaking on the long-standing debate between economic welfare and defence expenditure, Chief of Defence Staff (CDS) General Anil Chauhan on Friday said the long-standing debate between "guns and butter" can be resolved if resources are deployed smartly, with defence procurement contributing directly to national revenue, employment and industrialisation.

Addressing the Pune Public Policy Festival, regarding the budget allocation, CDS General said, "There has always been a debate between guns and butter. But if we play smartly, one can contribute to the other. The gun can contribute to the butter. Over the past three years, most of our procurements have been from domestic sources, once we do that, we're paying 18% GST, which goes back to the government funds. It helps generate employment and revenue through industrialisation. So, this is a change of strategy... that is one thing which we must realise." (ANI)

Karthik Narayan, Vice President Tax and Transition at Stellar Innovations, said Budget 2026 will be crucial for the future of India’s tax system. “The single most important change the middle class is hoping to see is a revision to the effective tax exemption limit,” he said.

Tax experts have cautioned that taxpayers should not expect sweeping income tax relief in Budget 2026, pointing out that significant concessions were already announced last year. “After the tax relief announced in the previous Budget, there is limited room for any major concessions this year,” experts told India Today, adding that the government has little space to cut rates further.

February 1 has been fixed as Budget Day for 2026 and falls on a Sunday this year. Finance Minister Nirmala Sitharaman will table the Economic Survey and present the General Budget during the session, which will begin with President Droupadi Murmu’s address to a joint sitting of Parliament.

The government has announced the full schedule for the Budget Session of Parliament. The first phase will run till February 13, followed by a break, with Parliament reassembling on March 9 for the second phase that will continue till April 2.

The Union Budget for 2026–27 will be tabled on Sunday, February 1. The Budget Session of Parliament will commence on January 28, 2026, and continue till April 2, with proceedings split into two phases, Union Minister Kiren Rijiju said.