Union Budget 2026: 10 Key Points For Beginners

The Union Budget is one of the most important financial documents of India. Every year, it is presented on February 1 by the Finance Minister, who outlines the government's planned revenue and expenditure for the upcoming financial year.

10 key points to understand Union Budget

1. The Union Budget is the annual financial plan of the government, serving as a blueprint for the fiscal year. 
2. The Budget Division, a part of the Department of Economic Affairs under the Ministry of Finance, is responsible for preparing the Budget, which predicts economic conditions and introduces new policies and schemes.
3. The Budget is made through a structured process involving different government bodies such as ministries, the Reserve Bank of India (RBI), NITI Aayog, and the Finance Ministry.
4. Until 2016, the Government of India used to present the Union Budget at the end of February, specifically on the last day. But since 2017, the date has been shifted to February 1 so that all plans, policies and schemes can be put into action before the fiscal year starts in April.
5. The Budget is presented in the form of the Finance Bill, which lays out the government's plans for taxes and revenue. To spend money according to the Budget, the government makes the Appropriation Bill. Both bills must be approved by the Lok Sabha before the Budget can take effect.
6. The Rail Budget, which used to be presented separately for decades, was merged with the Union Budget in 2016 to simplify financial planning.
7. Until 1999, the Union Budget was presented at 5 pm, a practice inherited from the British colonial era. But Yashwant Sinha, then Finance Minister, changed the timing to 11 am to allow for better media coverage.
8. According to Article 112 of the Constitution, the President is formally required to present the Union Budget; however, it is the Finance Minister who presents it in Parliament on the President's behalf.
9. The Budget is divided into two parts: the Revenue Budget and the Capital Budget. The Revenue Budget shows the government's income and day-to-day expenses, such as salaries, subsidies, and the running costs of the departments. The Capital Budget shows long-term spending on assets and projects, like building roads, railways, hospitals, or buying equipment.
10. The Budget allocates funds to various ministries and departments, managing key sectors such as defence, education, healthcare, infrastructure, and subsidies.