Finance Minister Nirmala Sitharaman will present Union Budget 2026 on February 1, 2026, marking her ninth consecutive Budget presentation and creating a historic milestone as the first Union Budget in recent history to be presented on a Sunday. This significant development highlights the evolution of India's budgetary process since independence.

Historical Evolution of India's Budget

The journey of India's Budget presentation has undergone substantial changes since the country's independence. The first Budget of independent India was presented on November 26, 1947, by Finance Minister RK Shanmukham Chetty, establishing the foundation for the nation's fiscal planning process.

The Significant Date Change of 2017

Until 2016, the Union Budget followed a long-standing tradition of being presented on the last working day of February. This practice continued for decades until Finance Minister Arun Jaitley implemented a historic change in 2017, shifting the Budget presentation date to February 1.

The rationale behind this change was multifaceted:

• Process Streamlining: The government aimed to ensure a more timely presentation of the Budget
• Implementation Time: Moving the date forward provided government and stakeholders additional time to implement changes before the financial year begins in April
• Administrative Efficiency: The earlier date allowed for better coordination and planning

Evolution of Budget Presentation Timing

The timing of Budget presentation has also undergone significant transformation. For decades, the Budget was presented at 5 pm, a colonial-era practice that aligned with UK time zones. This tradition was changed in 1999 when Finance Minister Yashwant Sinha moved the Budget presentation timing to 11 am, which has remained the standard time since then.

Union Budget 2026 Expectations

Budget 2026 is expected to focus on India's growth trajectory through strategic allocation to various sectors. The key sectors anticipated to receive attention include:

• Railways and infrastructure development
• Urban development initiatives
• Manufacturing and automotive sectors
• Defence and electronics
• MSME support and development
• Renewable energy and AI technologies

The presentation on a Sunday marks an unusual scheduling decision, as previous Budget presentations have typically been held on weekdays, with some instances on Saturdays. This ninth consecutive Budget by Finance Minister Sitharaman continues her record as one of the longest-serving Finance Ministers in terms of consecutive Budget presentations.

Finance Minister Nirmala Sitharaman is preparing to present her ninth Union Budget on February 1, 2026. Over the past five years, her tenure has been marked by comprehensive tax reforms that have significantly transformed India's taxation framework, particularly benefiting the salaried class and simplifying tax compliance procedures.

Income Tax Relief for Salaried Class

The most substantial reform came through progressive increases in tax-free income thresholds. In Budget 2025, Sitharaman raised the effective tax-free threshold for salaried individuals to ₹12.75 lakh, which includes a standard deduction of ₹75,000. This marked a significant expansion from Budget 2023, which initially exempted taxpayers earning up to ₹7 lakh annually under the simplified tax regime.

Capital Gains Tax Overhaul

Budget 2024 introduced sweeping changes to capital gains taxation, creating a more uniform structure across asset classes. The short-term capital gains (STCG) rate on certain financial assets increased from 15% to 20%. For long-term capital gains (LTCG), the budget established a uniform rate of 12.5% across all asset classes while removing the indexation benefit that previously helped reduce tax liability by adjusting gains against inflation.

The reforms also redefined holding periods for capital assets, establishing two clear thresholds: 12 months for listed assets such as shares and bonds, and 24 months for other assets including real estate and gold.

New Tax Regime Implementation

The new tax regime underwent a strategic rollout across multiple budgets. Initially introduced as an optional framework in Budget 2020 with concessional tax rates but without certain deductions, it became the default option in Budget 2023. This change required all taxpayers to file under the new regime unless they specifically opted for the old system.

Budget 2024 further refined the new tax regime by introducing revised tax slabs:

• No tax up to ₹3 lakh
• 5% tax between ₹3-7 lakh
• 10% tax between ₹7-10 lakh

Digital Assets and Assessment Reforms

The government addressed emerging financial instruments through Budget 2022, which imposed a 30% tax on virtual digital assets along with an additional 1% TDS on transfers of these assets. This marked the first comprehensive taxation framework for cryptocurrency and other digital assets in India.

Additionally, Budget 2021 streamlined assessment procedures by reducing the time limit for reopening assessments from six years to three years. However, in cases involving serious tax evasion with concealed income of ₹50 lakh or more annually, assessments can still be reopened for up to 10 years.

Enhanced Deductions and Benefits

The standard deduction for salaried employees under the new tax regime increased to ₹75,000 in Budget 2024. The same budget also raised the family pension deduction from ₹15,000 to ₹25,000 for taxpayers following the new regime, providing additional relief for pensioners and their families.