Union Budget 2026 Announced: What Increased, Percentage Hike & Market Impact

Union Budget 2026 Announced: What Increased, By How Much, and Key Market Announcements

The Union Budget 2026 announced today has set the economic direction for India for the financial year 2026–27. The Finance Minister presented a growth-focused budget with strong emphasis on infrastructure, investment, employment, and social welfare.

Below is a clear, point-by-point explanation of what increased, how much it increased, and what major announcements were made.

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1. Infrastructure Spending Gets a Big Push

• Total Capital Expenditure (Capex): Increased to ₹12.2 lakh crore
• Percentage Increase: 8.8% higher than the previous financial year
• Focus Areas: Roads, highways, railways, defence manufacturing, public infrastructure

This increase aims to create jobs, boost private investment, and accelerate long-term economic growth.

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2. New Growth Vision: Three-Kartavya Framework

The budget introduced a new growth model called the Three-Kartavya Framework.

• Social Inclusion: Growth benefits reach all sections of society
• Economic Resilience: Strengthening India against global uncertainties
• Opportunity Expansion: Creating more jobs and income opportunities

This framework focuses on balanced and inclusive development rather than growth for a few sectors.

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3. Strong Support for MSMEs and Small Businesses

• New MSME Fund: ₹10,000 crore announced
• Objective: Improve access to credit and support startups
• Impact: Boost entrepreneurship and employment generation

Small businesses form the backbone of the Indian economy, and this announcement was welcomed by the market.

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4. Relief and Expectations for Taxpayers

• Tax Structure: Focus on simplification and stability
• Middle-Class Focus: Discussions around higher tax-free income limits
• Goal: Increase disposable income and encourage spending

Although not all details were dramatic, the budget signals continued support for salaried and middle-income taxpayers.

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5. Major Announcements for Farmers and Rural India

• Kisan Credit Card Loan Limit: Increased from ₹3 lakh to ₹5 lakh
• Agriculture Missions: New missions for pulses, vegetables, and fruits
• Rural Infrastructure: Increased funding for irrigation and storage

These steps aim to raise farmers’ income and reduce financial stress in rural areas.

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6. Education and Healthcare Spending Increased

• New Medical Seats: 10,000 additional seats announced
• Healthcare: Day-care cancer centers planned in district hospitals
• Education: Expansion of digital and innovation-focused learning

Investment in human capital remains a core theme of the Union Budget 2026.

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7. Technology, Digital India, and AI Push

• AI Centers of Excellence: ₹500 crore allocation
• Digital Infrastructure: Broadband connectivity for schools and health centers
• Knowledge Economy: National digital knowledge repositories

This move positions India strongly for future technology-driven growth.

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8. Key Market-Related Announcements

• NRI Investment Limit: Increased to 10% under select rules
• Defence & Infrastructure: Continued policy support
• Manufacturing: Encouragement for domestic production

These announcements improved investor confidence and strengthened market sentiment.

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9. Market Reaction After Budget Announcement

• Stock Market: Positive response from infrastructure and capital goods stocks
• Investor Sentiment: Optimistic due to growth-focused spending
• Long-Term View: Market expects steady implementation

While short-term movements were mixed, the overall tone remained positive.

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Quick Summary: What Increased in Budget 2026

• Infrastructure spending: ₹12.2 lakh crore (8.8% increase)
• MSME support fund: ₹10,000 crore
• Kisan loan limit: ₹3 lakh → ₹5 lakh
• Medical education seats: +10,000
• AI investment: ₹500 crore

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Conclusion

The Union Budget 2026 announced today focuses on growth, infrastructure, employment, and long-term economic stability. By increasing capital expenditure and supporting key sectors, the government aims to strengthen India’s economy while keeping the common citizen in focus.

The real impact of this budget will become clear as these announcements turn into action over the coming months.