Union Budget 2026 focused on 3 kartavyas, ‘reform over rhetoric’, says Sitharaman

FINANCE Minister Nirmala Sitharaman on Sunday presented her ninth consecutive Union Budget in the Lok Sabha, setting out a reform-led economic roadmap anchored in three core ‘kartavyas’ (duties) as India navigates global uncertainty while sustaining domestic growth.

Ninth Budget of FM Nirmala Sitharaman

Delivering the Union Budget 2026 during the ongoing Budget Session of Parliament, Sitharaman said the government under Prime Minister Narendra Modi had consistently “preferred reform over rhetoric”. The presentation marks a record ninth budget for Sitharaman and the first to be delivered from the newly inaugurated Kartavya Bhawan.

Outlining the broad direction of fiscal and economic policy, the finance minister said the government’s approach would prioritise accelerating growth, ensuring inclusive development and maintaining the momentum of structural reforms.

Three kartavyas to steer economy amid global uncertainty

Presenting the budget, Sitharaman identified three central kartavyas, or duties, that would guide India’s economic strategy in the coming year. These duties, she said, are aimed at balancing growth with equity while responding to a challenging international environment.

Sitharaman said many youngsters had shared innovative ideas with Prime Minister Narendra Modi during the Viksit Bharat' young leaders' dialogue 2026. "They have inspired many of the proposals, making this a unique 'yuva shakti'-driven budget," the finance minister said.

According to Sitharaman, the government's 'sankalp' is to focus on our poor, underprivileged, and the disadvantaged. "To deliver on this 'sankalp', given that this is the first budget prepared in Kartavya Bhavan, we are inspired by three 'kartarvyas'," she said.

"First is to accelerate and sustain economic growth by enhancing productivity and competitiveness and building resilience to volatile global dynamics. Second is to fulfil the aspirations of our people and build their capacity, making them strong partners in India's path to prosperity. Third 'kartavya', aligned with our vision of 'Sabka Saath, Sabka Vikas', is to ensure that every family, community, region, and sector has access to resources, opportunities for meaningful participation," Sitharaman said.

She added that the three-fold approach required a "supportive ecosystem".

"The first requirement is to sustain the momentum of structural reforms, continuously adaptive and forward-looking. The second requirement is that a robust and resilient financial sector is central to mobilising savings, allocating capital efficiency and managing risks. Third is that cutting-edge technologies, including AI applications, can serve us for better governance," the minister added.

“Today we face an external environment where trade and multilateralism are imperative,” said Finance Minister Sitharaman in the Lok Sabha.

She added that the government remained committed to broad-based development, stating: “We will ensure that dividends of growth reach every farmer, scheduled caste, scheduled tribe, and youth.”

Labour Codes and GST reforms shape policy backdrop

Union Budget 2026 assumes significance as it comes in the wake of major structural reforms, including the consolidation of labour laws and the next phase of goods and services tax changes. The government has merged 29 labour laws into four Labour Codes covering wages, industrial relations, social security and occupational safety.

The new labour framework seeks to extend social security benefits to unorganised, gig and platform workers, improve workplace safety and simplify compliance for employers.

On indirect taxation, the government has outlined what it has described as ‘GST 2.0’, aimed at simplifying the tax regime through a two-rate structure of 5% and 18%. The reforms are intended to reduce compliance costs and lower the cost of living by cutting rates on essential goods and services.

Focus on exports amid global trade headwinds

This year’s Union Budget is also being closely watched for measures to boost export growth, particularly after the United States imposed a 50% tariff on Indian goods. Economists expect targeted interventions to support exporters and strengthen India’s competitiveness in global markets.

Earlier last week, Sitharaman tabled the Economic Survey of India for the 2025–26 financial year in Parliament, providing a macroeconomic assessment ahead of the Budget.

Budget session schedule and parliamentary process

The Union Cabinet, chaired by Prime Minister Modi, approved the Union Budget 2026–27 following a meeting in Parliament on Sunday. The budget session will comprise 30 sittings spread over 65 days and is scheduled to conclude on 2 April.

Both Houses of Parliament will adjourn for a recess on 13 February and reconvene on 9 March, allowing Standing Committees to examine the demands for grants of various ministries and departments.