Budget 2026: Nirmala Sitharaman to present Budget on February 1; Parliament session likely from Jan 28

The annual Union Budget presentation is far more than a mere financial statement; it is a comprehensive articulation of the government's economic vision, policy priorities, and resource allocation strategy for the upcoming fiscal year. The news that Finance Minister Nirmala Sitharaman will present the Union Budget 2026 on February 1, following President Murmu's address on January 28 and the Economic Survey on January 30, marks the beginning of one of the most critical parliamentary exercises in India.

The Budget session is a cornerstone of India's parliamentary democracy, mandated by the Constitution. It begins with the President's address to both Houses of Parliament (Lok Sabha and Rajya Sabha) assembled together, a constitutional requirement under Article 87. This address outlines the government's achievements over the past year and its policy agenda for the coming year, setting the tone for the session. Following this, the Economic Survey, prepared by the Chief Economic Adviser under the Ministry of Finance, is presented. This document provides a detailed review of the Indian economy's performance over the past year, analyses key economic trends, and offers policy recommendations, serving as a crucial backdrop for the Budget itself.

The Union Budget, formally known as the Annual Financial Statement as per Article 112 of the Constitution, is then presented by the Finance Minister. It details the government's estimated receipts and expenditures for the fiscal year (April 1 to March 31). This presentation initiates a multi-stage process involving general discussion, scrutiny by parliamentary standing committees, voting on demands for grants in the Lok Sabha, and finally, the passing of the Appropriation Bill (Article 114) and the Finance Bill. The Appropriation Bill authorises the government to withdraw funds from the Consolidated Fund of India (Article 266), while the Finance Bill gives effect to the financial proposals of the government, including taxation changes, for the upcoming year. The article highlights the session's structure: an initial phase until February 13 for the presentation and general discussion, followed by a recess for committee scrutiny, and then reconvening from March 9 to April 2 for detailed debate and voting.

Key stakeholders in this process include the President, who plays a ceremonial yet constitutionally vital role; the Finance Minister and the Ministry of Finance, who are responsible for the meticulous preparation and presentation of the Budget; and the Parliament (specifically the Lok Sabha), which has the exclusive power to vote on demands for grants and pass Money Bills (Article 109 and 110). The Comptroller and Auditor General (CAG), while not directly involved in the budget presentation, plays a crucial role in auditing government accounts post-facto (Article 148). Beyond these direct actors, every citizen is a stakeholder, as the Budget's provisions on taxation, subsidies, welfare schemes, and infrastructure spending directly impact their lives and livelihoods.

For India, the Union Budget is paramount. Economically, it determines the direction of fiscal policy, influencing economic growth, inflation, employment, and investment. It allocates resources across sectors like agriculture, industry, infrastructure, health, and education, thereby shaping development outcomes. Socially, it embodies the government's commitment to welfare, poverty alleviation, and equitable distribution of resources through schemes like MGNREGA, PM-KISAN, and various health and education initiatives. Politically, it is a statement of the government's priorities and an instrument of accountability, as the ruling dispensation must secure parliamentary approval for its financial proposals, reflecting the principle of 'no taxation without representation' and parliamentary control over the executive.

Historically, the budget presentation has evolved significantly. Until 2016, the Union Budget was presented on the last working day of February. In 2017, this tradition was broken, and the Budget began to be presented on February 1st. This change aimed to ensure that legislative approvals for financial proposals are completed before the start of the new fiscal year on April 1st, allowing ministries to implement schemes from day one. Another significant reform in 2017 was the merger of the Railway Budget with the Union Budget, ending a 92-year-old practice and integrating railway finances into the overall national financial framework. The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, also provides a legal framework for fiscal discipline, guiding the government's borrowing and deficit targets.

The future implications of the Budget are far-reaching. The policies and allocations announced will dictate India's economic trajectory for the next fiscal year, potentially impacting GDP growth, job creation, and foreign investment. It will signal the government's stance on key reforms, environmental initiatives, and social safety nets. For competitive exam aspirants, understanding the nuances of the Budget, its constitutional basis, and its economic implications is not just an academic exercise but a critical insight into the functioning of the Indian state and economy.