Union Budget 2026: What to Expect on Taxes, Reforms, and Growth Plans

Union Budget 2026 is set to be presented on February 1, shaping India’s tax and policy direction for the coming fiscal year. On Sunday, February 1st, the union government will table the annual union budget for the fiscal year 2026-27. Officials will release the Economic Survey several days earlier, on January 29. The opening day will be January 28th,h and the last day of the survey is March 2nd.

On January 28th, President Droupadi Murmu will give an address to both houses of Parliament. A legislative session break will occur on February 13th; when Parliament resumeson March 9th, all ministries will have had an opportunity to review prior to that date во time will also allow ministries to provide information about their proposed budgets.

Tax Changes Under Union Budget 2026 Expected to Remain Limited

Analysts are expecting tax changes in the current fiscal year to be conservative. With the introduction of the new tax regime and updated tax brackets during Budget 2025, the majority of taxpayers saw their taxable income brackets raised to ₹12 lakh and still qualify. Experts believe that there will not be any major changes in the tax brackets at this time and that only minor changes will be made, such as raising the standard deduction slightly to address the impact of inflation on disposable income. In addition, many tax professionals anticipate that the old-regime deductions will undergo further review and potential modifications as government policies move to encourage individuals to migrate to the new-tax regime. The previous GST reduction has already lowered the costs of consumer goods, which reduces the urgency for additional relief.

Insurance Sectora Seeks Wider Coverage and Long-term Reform

The insurance industry in India is looking for fundamental structural change in 2023. Industry leaders see a need to increase life and health insurance coverage for all segments of Indian society, especially those in low to moderate-income categories. As well, they want enhanced retirement benefits and better protection for MSMEs. The industry is calling for clearly defined policies as a prerequisite to allow for greater access to insurance, rather than merely increasing the tax incentives available, as is often the case.

The industry is looking for new distribution channels and options for insureds to be able to more easily finance their insurance premiums. Many companies within the industry believe that these changes will significantly increase both penetration and create greater protection gaps within the marketplace. Many experts believe that the long-term nature of the current Budget will greatly impact the way in which the insurance industry continues to develop in the future and increase the financial resiliency of each household.

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