What Is the Union Budget 2026? History, Importance & Key Facts | Anand Rathi

So, first things first—what exactly is the Union Budget?

Understand the Union Budget as India's yearly financial plan that tells us how much the government plans to spend for the upcoming fiscal year. It gives a rough idea (or blueprint) of the income sources it will earn, any tax changes, and how it wants to use public money for the year.

It also shows citizens and investors where the government's putting its attention and how it's planning to handle the economy.

As per sources, the Union Budget 2026 will be presented by the Finance Minister of India in Parliament on 1st February. The Finance Minister of India will deliver a speech explaining the plans for the upcoming financial year, after which discussions, debates, and approvals take place in both houses of Parliament.

On 1st February 2026, the Budget 2026 will be presented at 11:00 AM IST. It will be telecast live on Doordarshan and Sansad TV.

Before the actual Budget day, the President of India starts the Budget session. It is followed by a few days of discussions and debates, and then finally, the big budget announcement happens.

This period is usually time-sensitive, speculative, and quite buzzing. People, especially those from business, finance, and media, wait eagerly to see which sectors might get a push and which ones could face fresh challenges. Also, other citizens pay close attention, since it can impact taxes, subsidies, and even things like loan interest rates.

The Indian Budget history dates back to the 1860s when Scottish economist and politician James Wilson presented the first Indian Budget on 1st April, 1860. At this point, India was still under British colonial rule.

After independence, the Finance Minister of Independent India, Sir R.K. Shanmugham Chetty, presented the first budget on 26th November 1947. It was also the first time when the Budget got live in November, of course due to riots during the partition of India. Plus, the Indian budget history noted it as the first budget to have the shortest period of seven and a half months.

Likewise, the next union budget was presented on 1st April, 1948. History remembers this one as the budget in which the same currency between India and Pakistan came into force until September 1948.

Here's what other reforms happened in the rest budgets until 2025:

(Bonus Fact: The Union Budget wasn't always presented on 1st February. Until 2017, it used to be announced on the 28th or 29th of February. Later, the date shifted to the 1st so that policies could be implemented more smoothly from the start of the financial year.)

Now, to think, the preparing Indian Union Budget is mainly the job of the Finance Ministry, headed by the Finance Minister of India. But it's not just one person making decisions overnight.

Various departments like the DEA (Department of Economic Affairs), the Budget Drafting team, the Department of Expenditure, the Department of Revenue, and others. They detail the estimates and where all allocations can be made.

Once the draft is ready, it's presented in Parliament, where members debate and suggest changes. After discussions, the President of India gives the final approval. So, it's a collective effort backed by numbers, research, and policy thinking.

The Union Budget has two main parts:

Revenue Budget – It refers to the part of the budget assigned for the government's income and expenditure. This amount will be allocated to day-to-day costs, such as salaries, subsidies, and social schemes. Likewise, the government's income comes from taxes, duties, and other sources to balance the expenses.

Capital Budget – This allocation focuses on long-term investments, such as building highways, railways, and other infrastructure. It also includes loans and borrowings.

Other important components include taxes (direct and indirect), fiscal deficit (how much the government spends over what it earns), and allocations for key sectors like health, education, and defense.

Traditionally, the Halwa Ceremony is celebrated a week or 7-10 days before the actual budget session to mark the document printing. For that time, people involved in the drafting and presenting shall be locked and isolated in the North Block of the Parliament – until the Budget is presented.

During this time, these individuals shall have no contact with any outsider and only in case of emergency, the family or relatives can drop a message for them.

While many get confused between the Union budget and the Interim budget, here's a clear classification of the same.

Here are some of the unpopular yet fascinating facts about the Union Budget one must definitely know!

• The term "Budget" comes from the French word "Bougette", which translates to "Small leathercase or Bag." For many years, Budget documents were brought to the Parliament in a leather briefcase, until 2021 (in digital tablet).
• The Halwa ceremony was not a random ritual. When the 1950 Budget was leaked, the government decided to keep the officials in an isolated place until the Budget day.
• The shortest budget in Indian Budget History was presented by Finance Minister Hirubhai Mulljibhai Patel (also H.M. Patel) in 1977.
• The Union Budget is officially called the Annual Financial Statement in the Constitution, not "Budget".
• The tradition of the Halwa Ceremony marks the start of Budget document printing.
• In 2019, Nirmala Sitharaman became the 2nd women, after Indira Gandhi, to present the Budget in the Parliament.
• Earlier, Indian Railways had its own Budget, separate from the Union Budget. This practice was stopped in 2017, and now everything comes under one single Budget.

Behind every Budget announcement are traditions, history, and decisions that quietly shape everyday life. From old rituals like the Halwa ceremony to modern digital tablet presentations, the Budget has evolved with time.

With that said, even the Budget 2026 date will bring the same level of speculation and volatility among the investors. It is crucial to look at the budget positively and interpret it likewise.