Budget 2026: What to read after FM Sitharaman's address and why it matters

Union Finance Minister Nirmala Sitharaman presented the annual Budget for the financial year 2026-27 (FY27) on Sunday at 11 am. The Budget assumes significance as it decides how much tax people pay, and how much the government spends on jobs, health, education and welfare.

 

The Budget also shapes the economy, which can affect salaries, savings and prices. This year's Union Budget speech is expected to focus on continuity and long-term goals rather than major surprises.

 

Here's a detailed breakdown of different components of the Budget document and the important points to look out for.

Annual Financial Statement

This is the main Budget document. It shows how much money the government expects to earn and how much it plans to spend in the coming financial year, starting from April 1 to March 31. It is often simply called 'the Budget'.

 

 

This document matters because it gives the big picture of the government’s finances. People should look at total income, total spending, and the gap between the two to understand the fiscal deficit, which helps understand the government’s financial position.

Demands for Grants

This section lists how much money each ministry and department wants to spend during the year. These spending plans must be approved by the Lok Sabha before the money can be used.

 

It is important because it shows where government money is going, such as health, defence, education, or roads. Readers should look at which sectors get more or less money compared to last year.

Receipts Budget

The Receipts Budget explains where the government’s money will come from. This includes taxes, fees, borrowings, and aid from other countries.

 

This part is key because it shows how dependent the government is on taxes or borrowing. People should watch for changes in tax collections and how much money the government plans to borrow.

Expenditure Budget Volume 1

This document explains how the government plans to spend its money, including everyday expenses and spending on building assets like roads and railways. It also shows social sector spending.

 

It is important because it highlights priorities such as welfare schemes, women’s programmes, and children’s welfare. Readers should check if spending on key social areas is rising or falling.

Expenditure Budget Volume 2

This volume gives details of major government programmes and schemes. It explains why spending has increased or decreased compared to last year.

 

This helps people understand the purpose behind government spending. It is useful to see which programmes are being expanded and which are being cut back.

Finance Bill

The Finance Bill contains all the tax changes proposed in the Budget. This includes new taxes, tax cuts, or changes in tax rates.

 

This document matters most to taxpayers. People should look for changes that affect income tax, goods prices, and business taxes.

Memorandum on the Finance Bill

This note explains the tax changes in the Finance Bill in simple terms. It tells how the new rules will work in practice.

 

It helps people understand how tax changes will affect them. One should look at explanations related to personal income tax and consumer goods.

Budget at a Glance

This is a short summary of the Budget. It shows income, spending, taxes, and the government’s deficits in one place.

 

This is useful for a quick understanding of the Budget. People should check how large the deficit is and how money is divided across sectors.

Highlights of the Budget

This document lists the main announcements and new schemes in the Budget. It also mentions key funding decisions.

 

It helps readers quickly identify the most important takeaways. This is where to look for major policy changes and new benefits.

Status of previous Budget announcements

This document shows what has been done on promises made in the last Budget. It lists what is completed and what is still pending.

 

This is important for accountability. People can check whether earlier promises were actually carried out.

FRBM documents

The Fiscal Responsibility and Budget Management (FRBM) documents explain the government’s plans for managing the economy in the coming years. They include targets for borrowing, spending, and debt.

 

They matter because they show how serious the government is about controlling debt and spending. Readers should look at deficit and debt targets for the next few years.