Union Budget: Sitharaman to present her 8th Budget on Feb 1. More tax sops on cards?

The Cabinet Committee on Parliamentary Affairs (CCPA) has proposed the key dates for the upcoming Budget Session of Parliament. As per the proposal, the President's address will be delivered on January 28, while the Economic Survey will be tabled in Parliament on January 29.

The Union Budget is proposed to be presented on Sunday, February 1. This will mark the first time in recent history that the Union Budget is presented on a Sunday.

Industry lobby CII has suggested an accelerated four-pronged strategy to unlock value from the disinvestment of public sector enterprises, calling for a demand-driven approach in selecting units for privatisation and following a predictable roadmap.

The government should refrain from raising income tax surcharge on the super-rich and reintroducing wealth tax in the upcoming 2026-27 Budget, as the move could prompt persons in high-income brackets to leave the country for low-tax jurisdictions, according to tax experts.

Currently, a surcharge on income tax is payable by high-income individuals with earnings above Rs 50 lakh. A 10 per cent surcharge is levied on income between Rs 50 lakh and Rs 1 crore, 15 per cent (Rs 1-2 crore), and 25 per cent (Rs 2-5 crore). -- PTI

The Indian Micro-Fertilizers Manufacturers Association has urged the Centre to extend the 5 per cent GST rate to all fertilisers notified under the Fertiliser Control Order ahead of the Union Budget. While welcoming GST 2.0 as a landmark reform, the body flagged an inverted duty structure that is leading to accumulation of excess input tax credit.

It called for a clear, time-bound mechanism to expedite GST refunds to ease working capital stress. The association said uniform GST rates would ensure a level playing field and reduce classification disputes. It also pitched for a ‘One Nation, One Licence’ system to cut compliance costs. A centralised digital licensing repository was proposed to speed up approvals and improve ease of doing business.

Tax experts have cautioned the government against raising income tax surcharges on the super-rich or bringing back the wealth tax in the 2026-27 Budget, warning it could trigger capital flight to low-tax jurisdictions. They said higher and uncertain taxation may hurt investment, entrepreneurship and job creation, while wealth tax may not yield significant revenue compared to its administrative costs.

The Confederation of Indian Industry (CII) has proposed a strategic push for privatisation in its pre-budget recommendations for Union Budget 2026-27, focusing on enhancing efficiency, technology adoption, and global competitiveness. CII called for a demand-driven approach to identify Public Sector Enterprises (PSEs) for disinvestment, coupled with a rolling three-year privatisation pipeline to give investors clarity and encourage participation. The industry body suggested creating a dedicated institutional framework with ministerial and advisory boards to ensure professional oversight and transparent execution.

CII also recommended a phased reduction of government stakes in listed PSEs to 51% initially, potentially unlocking close to Rs 10 lakh crore, which could be reinvested in infrastructure, social development, and fiscal consolidation. Director General Chandrajit Banerjee said such measures would balance strategic control with value creation and strengthen investor confidence. The blueprint aims to accelerate industrial transformation while allowing the government to focus on core functions.

Goa Chief Minister Pramod Sawant on Saturday sought a more equitable Centre–state funding pattern under centrally sponsored schemes, citing the state’s coastal vulnerabilities, Western Ghats ecology, and tourism responsibilities. He raised the demand during the pre-Budget consultation for the Union Budget 2026-27, chaired by Finance Minister Nirmala Sitharaman in New Delhi.

Sawant said Goa stressed the need to sustain momentum in key infrastructure projects and strengthen social welfare schemes. The state also pushed for better industrial and logistics connectivity and improved rail links to major urban centres. Climate-resilient infrastructure to address environmental challenges was another key focus. The discussions also covered healthcare capacity, waste management, tourism skilling, and a faster transition to clean energy.

Ahead of the FY27 budget presentation on February 1, state leaders met Finance Minister Nirmala Sitharaman for pre-budget consultations, requesting increased financial support for capital investments and compensation for GST revenue losses. The states also sought additional funding for urban and rural development, housing programs, and disaster management.

Kerala raised concerns over Rs 17,000 crore withheld by the Centre and asked for a higher borrowing ceiling. Telangana proposed infrastructure projects, including 2.5 million houses under PMAY, a new IIM, and expansion of transport networks like the Hyderabad Metro. Andhra Pradesh pushed for regional development, including the Rayalaseema Horticulture Package and the Polavaram-Nallamala Sagar Link project. Sitharaman stressed state participation and reforms to achieve India’s goal of becoming a developed nation by 2047.

Real estate developers and homebuyers are also expecting Budget 2026 to streamline approvals through a true single-window clearance system, which could speed up construction timelines and improve transparency.

The sector is pushing for a redefinition of affordable housing, based on the total cost of homes rather than carpet area, with city- or zone-wise limits to ensure more projects qualify for benefits such as tax breaks, subsidies, and lower-interest loans. Additionally, the industry is advocating for full industry status for real estate, which would allow easier access to institutional finance, lower interest rates, and more stable long-term funding structures.

Ahead of Union Budget 2026, the real estate sector is seeking reforms to protect homebuyers, improve transparency, and promote sustainable housing. Industry bodies are urging the government to offer stamp duty concessions for certified green homes, which could make eco-friendly properties more affordable and widely adopted.

Developers also want clarity on the redevelopment sector, particularly for homeowners who have vacated their old premises and are awaiting payments, calling for a fast-track grievance redressal mechanism. In integrated township projects, stakeholders are requesting the creation of a “master developer” category responsible for common infrastructure, to reduce disputes when multiple developers work on different sectors of the same township.