Historic 9th Budget: A Record-Breaking Budget Day
Finance Minister Nirmala Sitharaman made history on February 1, 2026, as she presented her ninth consecutive Union Budget, cementing her status as India’s longest-serving continuous finance minister and equaling the record of former Finance Minister P Chidambaram for total budgets presented. This milestone budget comes at a critical juncture as India—the world’s fastest-growing major economy—navigates global uncertainties while maintaining domestic growth momentum projected at 7.4 percent for the fiscal year ending March 31, 2026.
In a dramatic departure from 75 years of tradition, Sitharaman used Part B of her Budget speech—traditionally reserved for brief tax and policy announcements—to unveil a comprehensive vision for India’s economic future as the nation enters the second quarter of the 21st century. This unconventional approach signals the government’s intent to position the budget not merely as an annual fiscal exercise, but as a strategic roadmap highlighting India’s local strengths and global ambitions.
Breaking the 75-Year Tradition: The Part B Revolution
The Traditional Format vs. The New Approach
Historically, Union Budget speeches in India have followed a well-established pattern: Part A contains most of the substantive content, reviewing the state of the economy and laying out broad policy direction, while Part B remains confined to tax proposals and technical announcements.
Traditional Structure:
- Part A: Extensive detail, economic review, strategic policy focus
- Part B: Brief tax and policy announcements, technical details
Budget 2026 Structure:
- Part A: Standard economic review
- Part B: Detailed economic vision, short-term priorities, long-term goals, reform roadmap
Why the Change?
According to government sources who spoke to NDTV and CNBC-TV18, this year’s Part B is expected to outline both immediate policy measures and long-term economic goals, reflecting India’s priorities as it moves deeper into the 21st century.
The shift offers “a clearer roadmap for leveraging domestic strengths and positioning the economy more competitively on the global stage,” officials explained. Part B is also expected to outline changes to export and manufacturing frameworks, including proposals to merge existing schemes to improve efficiency and reduce administrative burden.
This restructuring represents “a notable departure from the past” and signals the Modi government’s intent to use the budget as a platform for articulating India’s broader economic vision beyond annual fiscal parameters.
Nirmala Sitharaman: Approaching a Historic Milestone
The Record Books
With her ninth consecutive budget, Nirmala Sitharaman now holds two significant records:
Longest-Serving Continuous Finance Minister:
- Assumed charge: May 31, 2019
- Tenure: 6 years and 8 months as of January 31, 2026
- Consecutive budgets: 9 (an unbroken record)
- Surpasses: C.D. Deshmukh’s continuous tenure record
Approaching the All-Time Budget Record:
- Current: 9 budgets presented
- Tied with: P. Chidambaram (9 budgets, non-consecutive)
- One behind: Morarji Desai (10 budgets presented in different periods)
Desai’s Record:
- 6 budgets as Finance Minister (1959-1964) under PM Jawaharlal Nehru
- 4 budgets (1967-1969) under PM Lal Bahadur Shastri
- Total: 10 budgets across different tenures
Prime Minister Narendra Modi acknowledged this achievement ahead of the Budget session, stating that Sitharaman presenting the Union Budget for the ninth consecutive time “will be recorded as a matter of pride in India’s parliamentary history”.
Stewardship Through Crisis
Sitharaman’s tenure as India’s first full-time woman finance minister has been marked by extraordinary challenges:
- COVID-19 pandemic: Navigating unprecedented economic disruption and recovery
- Geopolitical turmoil: Managing economic stability amid global conflicts and supply chain disruptions
- US tariffs: Weathering punitive tariffs imposed by President Donald Trump
- Fastest-growing major economy: Maintaining India’s position as the world’s fastest-growing large economy
Through these challenges, India has maintained robust growth, with the current fiscal year projected to achieve 7.4 percent GDP growth, supported by government infrastructure spending and income and consumption tax cuts that boosted consumer spending.
Key Budget Priorities and Allocations
Rural Development and Agricultural Focus
The Union Budget 2026 gives top priority to rural development and the agricultural sector, sources confirmed on Saturday.
VB-G RAM G: The New Rural Employment Scheme
The budget allocated Rs 95,692 crore for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), the revamped rural employment scheme that replaces the two-decade-old MGNREGA.
Key Features of VB-G RAM G:
- 125 days of guaranteed employment per rural household annually (up from 100 days under MGNREGA)
- Aggregated 60-day no-work period to ensure agricultural labor availability during peak sowing and harvesting seasons
- 305 working days within which 125 guaranteed employment days must be provided
- Weekly wage disbursement or within a fortnight at most (improving from previous delays)
- MGNREGA component: Rs 30,000 crore within the total allocation
Structural Change:
The scheme shifts from a central sector program to a centrally sponsored framework, meaning states now share both costs and responsibilities through a normative allocation framework. Planning is grounded in regional realities through Gram Panchayat Plans, while the Centre continues to set standards and states execute with accountability.
Budget Context:
The Rural Development Ministry had requested an increase to Rs 1.51 lakh crore (a 72 percent increase from the previous Rs 86,000 crore MGNREGA budget). The actual allocation of Rs 95,692 crore represents a significant increase of approximately 11 percent, though less than requested.
Pradhan Mantri Gram Sadak Yojana (PMGSY):
The rural roads program received Rs 19,000 crore for 2026-27, maintaining the same allocation as 2025-26.
Defence, Infrastructure, and Capital Expenditure
In fiscal 2027, India is likely to prioritize several key sectors:
- Defence: Enhanced allocations amid geopolitical tensions
- Infrastructure: Continued focus on roads, railways, ports, and digital infrastructure
- Capital expenditure (capex): Critical for sustaining economic growth
- Power sector: Supporting industrial expansion and energy transition
- Affordable housing: Higher growth to address housing shortages
Capex Targets:
The government’s planned capital expenditure for fiscal 2026 was budgeted at Rs 11.2 lakh crore. The Budget 2026 is likely to maintain its capex focus with a 10-15 percent increase from current levels, as private sector players remain cautious about large-scale investments.
This continued emphasis on government-led capital spending reflects recognition that public investment must compensate for subdued private sector appetite for major capex commitments.
Fiscal Discipline and Debt Management
Fiscal Deficit Target:
The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 percent of GDP. Having achieved the fiscal consolidation roadmap with a deficit below 4.5 percent in fiscal 2026, markets are keenly watching for direction on debt-to-GDP reduction in subsequent years.
Market Focus:
Investors and economists will scrutinize whether the government outlines:
- A medium-term path toward the 3 percent fiscal deficit target
- Strategies for reducing India’s debt-to-GDP ratio
- Revenue mobilization measures beyond tax increases
- Expenditure rationalization without compromising growth
Investment Climate and Ease of Doing Business
Further changes designed to draw more domestic private and foreign investment are expected in Budget 2026. According to a Reuters report, the budget includes plans to make it much easier for foreign firms to invest in defence companies with existing licenses, addressing a longstanding barrier to foreign direct investment (FDI) in this strategic sector.
This reform aligns with India’s “Atmanirbhar Bharat” (self-reliant India) vision, which paradoxically seeks to leverage foreign investment and technology to build domestic manufacturing capabilities in critical sectors like defense, aerospace, and advanced manufacturing.
The Paperless Budget: A Modern Tradition
Nirmala Sitharaman famously replaced the colonial-era leather briefcase with a traditional ‘bahi-khata’ (ledger) wrapped in red cloth when she presented her first budget in 2019, symbolizing a blend of tradition and modernity.
Since then, the budget has evolved further toward digitalization. Budget 2026 is presented in paperless form, continuing the practice adopted over the last four years. This digital-first approach reflects India’s broader push toward e-governance, environmental sustainability, and technological modernization of government processes.
Economic Context: Navigating Global Headwinds
Strong Domestic Foundation
India’s economy has demonstrated remarkable resilience, withstanding punitive US tariffs imposed by President Donald Trump. Growth is forecast at 7.4 percent for the year ending March 31, 2026, supported by:
- Government spending on infrastructure
- Income tax cuts
- Consumption tax reductions
- Robust consumer spending
This growth rate positions India as the fastest-growing major economy globally, outpacing China, the United States, and other large economies despite global economic uncertainty.
Complex Global Backdrop
The Union Budget 2026 comes against a challenging international environment:
Positive Domestic Factors:
- Domestic demand has held up well
- Inflation has moderated from recent highs
- Consumer confidence remains relatively strong
Global Uncertainties:
- Geopolitical tensions (Ukraine conflict, Middle East instability)
- Volatile commodity prices (oil, food grains, metals)
- Uneven monetary easing by major central banks (Fed, ECB, Bank of Japan)
- Trade protectionism and tariff wars
- Supply chain disruptions
These external challenges cloud the economic outlook and require careful policy calibration to buffer the Indian economy from global trade frictions.
What to Watch: Key Takeaways
As Finance Minister Sitharaman delivered her historic ninth budget, several key themes emerged:
- Part B Focus: The unprecedented emphasis on Part B signals a strategic shift toward articulating comprehensive long-term economic vision
- Rural-Urban Balance: Substantial allocation to VB-G RAM G (Rs 95,692 crore) reflects commitment to rural employment and income security
- Fiscal Prudence: Maintaining the 4.4 percent fiscal deficit target demonstrates continued commitment to fiscal consolidation
- Capex Push: Expected 10-15 percent increase in capital expenditure to sustain infrastructure-led growth
- Investment Reforms: Easing FDI norms in defense and other sectors to attract global capital
- Global Positioning: Using the budget to articulate India’s economic ambitions on the global stage
Conclusion: A Vision Beyond Numbers
Nirmala Sitharaman’s ninth consecutive Union Budget represents far more than an annual fiscal statement. By breaking the 75-year tradition of relegating Part B to brief tax announcements and instead using it to articulate a comprehensive economic vision, the Finance Minister has transformed the budget into a strategic document that positions India for the challenges and opportunities of the 21st century.
As India enters the second quarter of the century with 7.4 percent growth, robust domestic demand, and improving fiscal metrics, Budget 2026 seeks to balance immediate priorities—rural employment, infrastructure, defense—with long-term aspirations of becoming a developed nation by 2047.
Whether through record allocations for rural employment under VB-G RAM G, continued emphasis on capital expenditure, or reforms to attract foreign investment in strategic sectors, this historic ninth budget charts a course for sustaining India’s position as the world’s fastest-growing major economy while navigating an increasingly uncertain global landscape.