Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 today in the newly named Kartavya Bhawan, outlining a future built on three core “Kartavyas”: economic growth, fulfilling aspirations, and inclusive development. This budget is particularly notable as it signals a transition toward a “Viksit Bharat” by prioritizing the youth, modernizing our tax system, and making critical investments in infrastructure and healthcare.
The New Tax Era: Income Tax Act 2025
For the average citizen, the biggest shift is the introduction of the New Income Tax Act, 2025, which will come into force on April 1, 2026. The government aims to retire the aging 1961 law in favor of a simpler code with redesigned forms that even non-experts can navigate. While the core slabs remain steady, the focus has shifted to ease of compliance. Notably, families looking to send children abroad for studies or planning international travel will find relief, as the TCS (Tax Collected at Source) on foreign remittances and tour packages has been reduced to just 2%. Furthermore, the window to revise tax returns has been extended to March 31, providing a much-needed buffer for the middle class.
Empowering the Next Generation
This budget firmly places its bets on “Yuva Shakti.” In a major push for women’s education, the government has committed to building one girls’ hostel in every district for students in higher education STEM institutions. Recognizing the digital explosion, the budget also supports the Indian Institute of Creative Technologies, Mumbai, to set up 15,000 AVGC (Animation, Visual Effects, Gaming, and Comics) Content Creator Labs in schools. These labs are designed to prepare 2 million young professionals for the global creator economy by 2030. Additionally, the new Khelo India Mission will create a decade-long pathway for athletes, integrating sports science and technology into grassroots training.
Infrastructure and High-Speed Connectivity
India’s connectivity is set for a high-speed upgrade with the announcement of seven High-Speed Rail Corridors acting as “growth connectors.” These routes, including Mumbai-Pune and Pune-Hyderabad, aim to revolutionize passenger movement. On the industrial side, new Dedicated Freight Corridors and 20 new National Waterways will streamline cargo movement, particularly in mineral-rich regions like Odisha. To support smaller businesses, a ₹10,000 crore SME Growth Fund has been proposed to help MSMEs scale up and compete on a global stage.
Healthcare and Agriculture: The Digital Leap
In health, the budget introduces “Biopharma SHAKTI,” a ₹10,000 crore initiative to make India a hub for biologics and biosimilars. This includes upgrading pharmaceutical institutes and creating over 1,000 clinical trial sites. Mental health remains a priority with the announcement of NIMHANS-2 and upgrades to regional institutes. For our farmers, the government introduced Bharat-VISTAAR, a multilingual AI tool designed to provide customized advisory support, helping them make smarter decisions and reduce crop risks using real-time data.
Budget 2026: The “Shopping List” Impact
| What Gets CHEAPER? 🟢 | What Gets COSTLIER? 🔴 |
| 17 Cancer & Rare Disease Drugs | Cigarettes & Beedis |
| EV Battery Components (Lithium-ion) | Pan Masala & Gutka |
| Solar Panels & Solar Glass | Imported Cameras & Luxury Gear |
| Smartphones & Microwave Parts | Trading in F&O (Higher STT) |
| Leather & Textile Machinery | Specific Minerals (Coal, Iron) |
| Foreign Education & Tours (Lower TCS) | Imported Coffee Machines |
Savvy World Perspective: Why this Budget Matters
This budget shows a shift from “spending” to “building capacity.” By simplifying the tax code and focusing on district-level infrastructure like hostels and creator labs, the government is betting on the youth to drive the economy toward a Viksit Bharat. It’s a roadmap that balances fiscal discipline with the very real aspirations of a modern, digital-first India.
As India moves toward the 2026-27 fiscal year, the “Sankalp” of this budget will be tested by its implementation at the grassroots level. Whether it is the simplified tax filing or the ambitious rail corridors, the focus remains on making India “future ready.”
What do you think of the new Income Tax Act 2025? Does it truly simplify life for the common man? Share your thoughts with us in the comments below or reach out to us at Savvy World.
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