Budget 2026-27 Key Highlights: Rs 11 Lakh Crore Infrastructure Spend, Zero Tax Under Rs 12 Lakh, Green Energy Boost
Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 with a focus on infrastructure investment, middle-class tax relief with zero income tax up to Rs 12 lakh, and a massive push for renewable energy and green hydrogen.
Representative image. Photo: Nationalism News
Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget on February 1, 2026, unveiling a Rs 50.65 lakh crore expenditure plan that prioritises infrastructure, clean energy, agricultural reform and middle-class tax relief.
The most significant personal finance announcement: individuals earning up to Rs 12 lakh per annum will pay zero income tax under the new tax regime, up from the previous threshold of Rs 7 lakh. For salaried individuals, the effective threshold rises to Rs 12.75 lakh after the standard deduction of Rs 75,000.
Infrastructure spending has been scaled up to Rs 11 lakh crore — equivalent to 3.1% of GDP — with the National Highways Authority of India receiving Rs 2.78 lakh crore to build or upgrade 50,000 km of roads. Urban metro projects in 8 new cities also received approval.
The green energy sector received a historic allocation: Rs 35,000 crore for green hydrogen production, Rs 28,000 crore for rooftop solar under PM Surya Ghar Yojana, and Rs 15,000 crore for offshore wind energy in the Bay of Bengal.
Agriculture, always politically sensitive, received expanded PM-KISAN payments (Rs 8,000 per year, up from Rs 6,000), a new Rs 1 lakh crore crop insurance fund and a 6% increase in MSP across all 23 crops.
The fiscal deficit target has been set at 4.4% of GDP for 2026-27, declining from 4.9% this year, as the government walks a tightrope between stimulus spending and fiscal consolidation ahead of a credit rating review expected in Q3 2026.
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