Budget 2026-27 LIVE: Operation Sindoor: Major hike in defence spending

President Droupadi Murmu feeds ‘dahi-shakkar’ (curd with sugar) to Finance Minister Nirmala Sitharaman ahead of Budget presentation.

In North Indian tradition, feeding someone a spoonful of curd (dahi) mixed with sugar (shakkar or cheeni) before they leave for an important event is a longstanding ritual associated with good fortune and auspicious beginnings.

Known as dahi-shakkar, the practice is rooted in the belief that curd symbolises purity and prosperity. The act of eating it just before stepping out is seen as a positive omen, marking the moment with hope and reassurance.

It acts as a cooling, soothing, and energising treat, believed to calm nerves and ensure success.

#WATCH | President Droupadi Murmu feeds Union Finance Minister Nirmala Sitharaman the customary 'dahi-cheeni' (curd and sugar) ahead of her ninth consecutive Union Budget presentation. pic.twitter.com/WouiznFEMr

— ANI (@ANI) February 1, 2026

Finance Minister Nirmala Sitharaman will present her record 9th straight Budget, and all eyes will be on the much-awaited customs reforms.

Sitharaman had, in her first Budget in 2019, replaced the leather briefcase -- which had been in use for decades for carrying Budget documents -- with a traditional 'bahi-khata' wrapped in red cloth. This year's budget will be in paperless form, as done in the last four years.

Here are the key numbers to watch out for in the Union Budget for 2026-27: * Fiscal Deficit: The budgeted fiscal deficit, which is the difference between the government expenditure and income, for the current fiscal (April 2025 to March 2026 or FY26), is estimated at 4.4 per cent of GDP.

Having achieved a fiscal consolidation roadmap with a deficit below 4.5 per cent of GDP in FY26, markets will keenly watch for direction on debt-to-GDP reduction in the FY27 Budget, as well as whether the government will provide a specific fiscal deficit number for the next financial year. There is an expectation that the government could announce a fiscal deficit of 4 per cent of the GDP for FY27.

* Capital Expenditure: The government's planned capital expenditure for this fiscal year is budgeted at Rs 11.2 lakh crore. The government is likely to maintain its focus on capital expenditure in the upcoming Budget, with a 10-15 per cent increase in the capex target from the current level, as private sector players remain cautious.

The government would have space for capex, and it should be in excess of Rs 12 lakh crore, as the pay revision will be announced in FY28, leaving little room for others.

* Debt Roadmap: The finance minister, in her 2024-25 budget speech, had stated that from 2026-27 onwards, fiscal policy would endeavour to maintain the fiscal deficit in a way that the central government debt is on a declining path as a percentage of GDP.

Markets will closely look for the debt consolidation roadmap from FY27 onwards to see when the finance minister sees general government debt-to-GDP fall to the 60 per cent target. The general government debt-to-GDP ratio is estimated to be over 85 per cent in 2025, which includes central government debt of around 55 per cent.

* Borrowing: The government's gross borrowing Budget was Rs 14.80 lakh crore in FY26. The government borrows from the market to fund its fiscal deficit. The borrowing number will be watched by the market as it gives a sense of the fiscal health of the country, and also about revenue and non-revenue collection.

* Tax Revenue: The 2025-26 Budget had pegged gross tax revenues at Rs 42.70 lakh crore, an 11 per cent growth over FY25. This includes Rs 25.20 lakh crore estimated to come from direct taxes (personal income tax + corporate tax), and Rs 17.5 lakh crore from indirect taxes (customs + excise duty + GST).

* GST: Goods and Services Tax (GST) collection in 2025-26 is estimated to rise 11 per cent to Rs 11.78 lakh crore. FY27 GST revenue projections will be closely watched, as the revenue growth is expected to gain momentum with the government's implementation of rate reductions since September 2025.

* Nominal GDP: India's nominal GDP growth (real GDP plus inflation) in FY26 was estimated to be 10.1 per cent, while the real GDP growth estimated by NSO is 7.4 per cent. However, nominal GDP has been revised downward to 8 per cent due to inflation falling below the estimation during the Budget.

FY27 nominal GDP growth projections in the Budget will give an idea about the inflation trajectory in the next fiscal. As per the various estimates, the government may announce a nominal GDP between 10.5 and 11 per cent for FY27.

* Dividend: The Government estimates a Rs 1.50 lakh crore dividend, which includes Rs 1.02 lakh crore from RBI and financial institutions and the rest Rs 48,000 crore from CPSEs.

RBI has already paid a substantially higher dividend of Rs 2.69 lakh crore in FY26, and the FY26 Budget numbers are likely to be revised upwards. The dividend income that the government expects will be keenly watched, given the tax revenue sacrifices it made from income tax and GST cuts.

* Subsidy: The government had earmarked Rs 3.83 lakh crore towards subsidies for the current financial year ending March 2026. The food subsidy was pegged at a maximum of Rs 2.03 lakh crore.

* Spotlight would also be on spending on key schemes like VBG RAM G, as well as key sectors like health and education.

The Union Cabinet headed by Prime Minister Narendra Modi on Sunday (February 1) approved the Union Budget 2026-27.

Following the approval, Finance Minister Nirmala Sitharaman will present her ninth Budget in the Lok Sabha that comes in the backdrop of global uncertainties and slowdown in exports.

This is the third Budget of the BJP-led NDA government in its third term in office.

Sitharaman had in her first Budget in 2019 replaced the leather briefcase -- which was in use for decades for carrying Budget documents -- with a traditional 'bahi-khata' wrapped in red cloth. This year's Budget would also be in paperless form.

Gross GST collections rose 6.2 per cent to over Rs 1.93 lakh crore in January, mainly on higher revenues from imports, sources said on Sunday (February 1).

Total refunds declined 3.1 per cent to Rs 22,665 crore. Net Goods and Services Tax (GST) revenues, however, grew 7.6 per cent to about Rs 1.71 lakh crore in January.

Cess collection (from tobacco products) in January stood at Rs 5,768 crore. This compares to Rs 13,009 crore in collections in January last year when a cess was levied on luxury, sin, and demerit goods such as cars and tobacco products.

Effective September 22, 2025, GST rates on about 375 items were slashed, making goods cheaper. Also, a compensation cess is levied only on tobacco and related products, as opposed to luxury, sin, and demerit goods earlier. The lowering of GST rates has impacted revenue collections.

Gross tax collections from domestic transactions grew 4.8 per cent to Rs 1.41 lakh crore, while import revenues were up 10.1 per cent to Rs 52,253 crore in January.

Stock market benchmark indices Sensex and Nifty fluctuated in a narrow range in early trade on Sunday (February 1) ahead of the Budget 2026-27 presentation.

After opening the day on a positive note, the 30-share BSE Sensex later fluctuated and quoted 13 points up at 82,282.82. The 50-share NSE Nifty skidded 7.90 points to 25,312.75 after opening marginally higher.

The Union Budget for 2026-27 will be presented in Parliament later in the day.

From the 30 Sensex firms, Sun Pharma climbed nearly 3 per cent after the firm posted a 16 per cent increase in consolidated net profit to Rs 3,369 crore in the third quarter ended December 31, 2025, led by growth across business segments. Bharat Electronics, Power Grid, NTPC and HDFC Bank were among the other major gainers.

However, Infosys, Tata Steel, Eternal and Tech Mahindra were among the laggards.

"Markets are likely to remain highly volatile, with sharp moves possible in either direction depending on key announcements around fiscal policy, capex push, sector-specific incentives, and the fiscal deficit target (expected around 4.3–4.4 per cent of GDP for FY27)," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

The Congress on Sunday (February 1) took a swipe at the Modi government over US President Donald Trump's remarks that India is going to buy oil from Venezuela instead of Iran, saying the American leader continues to give “information on what our own government has done or will be doing”.

The opposition party's dig came after Trump, responding to a question, told reporters while travelling on Air Force One, "China is welcome to come in and we'll make a great deal on oil. We welcome China. We've already made a deal. India is coming in, and they're going to be buying Venezuelan oil as opposed to buying it from Iran. So, we've already made that deal, the concept of the deal," Trump said.

Congress general secretary in-charge communications Jairam Ramesh shared the audio of Trump's remarks on X.

"He (Trump) told us Op Sindoor had been halted. He told us India had stopped buying Russian oil. And now this," the Congress leader said.

"President Trump continues to give us information on what our own government has done or will be doing," Ramesh said on X.

Around 90 lakh devotees took a dip in the Ganga and at the Sangam on the occasion of Magh Purnima at the ongoing Magh Mela in Prayagraj on Sunday (February 1), braving severe cold wave conditions, officials said.

According to the Mela Authority, devotees began arriving from midnight, and by 8 am nearly 90 lakh pilgrims had performed ritual bathing in the Ganga and at the confluence.

District Magistrate Manish Kumar Verma said Magh Purnima marked the final holy bath for Kalpvasis, who have been observing Kalpvas for the past one month at the Magh Mela. Family members of the Kalpvasis (month-long practice of austerity) have also arrived to take them back home, he said.

Verma said that even though dense fog prevailed in the morning, a large number of devotees continued to arrive, and bathing was being conducted smoothly at all ghats.

Adequate security arrangements have been put in place, with teams of the SDRF and NDRF deployed across the mela area, along with boatmen and divers at all ghats.

US President Donald Trump said the US was beginning to talk with Cuban leaders as his administration is putting greater pressure on the communist-run island and cutting off key oil supplies.

The Republican president made the comment to reporters on Saturday night (January 31) as he was flying to Florida. It comes in the wake of his moves in recent weeks to cut off supplies of oil from Venezuela and Mexico, which he suggested would force Cuba to the negotiating table.

His goals with Cuba remain unclear, but Trump has turned more of his attention towards the island after his administration in early January captured Venezuela's then-President Nicolas Maduro and has been more aggressive in confronting nations that are adversaries of the US.

Trump has predicted that the Cuban government is ready to fall.

He did not offer any details on Saturday about what level of outreach his administration has had with Cuba recently or when, but simply said, “We're starting to talk to Cuba.” His recent moves to cut off its oil supplies have squeezed the island.

The Karnataka Film Chamber of Commerce (KFCC) has elected actor, former minister Jayamala as its president, defeating producer BM Harish. KFCC announced the results of its election 2025–26 on Saturday (January 31).

Jayamala is a senior figure in the Kannada film industry, with a long career spanning acting, production, and film-related public service. She had also served as the minister for woman and child development in the JD(S)-Congress coalition government, as well as the chairperson of the Karnataka State Commission for Women.

According to the results declared by the chamber, Sunder Rajan MK won the post of vice president (producer). In the vice president (distributor) category, Manju K emerged victorious. Kishore Kumar MN was elected vice president (exhibitor), the chamber said.

For the post of honorary secretary (distributor), Ramesh Babu MR, also known as Likith, was elected, while Ashok KC was elected honorary secretary (exhibitor). Jayasimha Musuri B K was elected the honorary treasurer. The Karnataka Film Chamber of Commerce said the newly elected office bearers will hold office for the 2025–26 term.