Budget 2026 FAQs: Full List of Questions on Income Tax, Schemes, Rail, Jobs & Inflation Answered

The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, at a time when inflation is low and growth momentum is steady. Budget 2026 has raised several key questions among taxpayers, investors, and businesses. Here is a detailed FAQ addressing the most important queries and what the Budget means in practical terms.

What is the main focus of Budget 2026?

This year's Budget 2026 mainly focused on growth-led development, with emphasis on manufacturing, infrastructure, job creation, ease of compliance, and fiscal discipline. Some of the major announcements included capex increase to Rs 12 lakh crore, no changes in personal income tax, a surprise hike in STT on futures and options, revision in TDS and TCS rules, fresh incentives for MSMEs, rare-earth corridors, high-speed rail projects and a major tourism and infrastructure expansion.

What changes have been made to income tax slabs?

No major changes have been made under the new tax regime for FY 2025-26 (AY 2026-27), income tax slabs remains the same

Have ITR filing rules changed in Budget 2026?

Yes. Union Budget 2026 has eased income tax return (ITR) filing norms for FY 2025-26 (AY 2026-27) by extending deadlines and simplifying compliance. The deadline for filing revised ITRs has been pushed from December 31 to March 31 following the end of the tax year (that is, March 31, 2027 for FY 2025-26). A nominal fee will apply for revised returns filed after December 31-Rs. 1,000 for income up to Rs. 5 lakh and Rs. 5,000 for income above Rs. 5 lakh.

What new government schemes were announced?

Key new schemes include:

Biopharma Shakti (Rs. 10,000 crore) to boost biopharma manufacturing
Rs. 10,000 crore SME Growth Fund
Three chemical parks to support chemicals and manufacturing
Divyangjan Kaushal Yojana for skill development
Expanded support for khadi, handlooms, horticulture, and healthcare

What does Budget 2026 offer for Railways?

Indian Railways received a record capital expenditure allocation of Rs. 2.93 lakh crore, a 5.4% increase. The Budget announced seven high-speed rail corridors, new lines, track doubling, rolling stock upgrades, and a Dankuni-Surat dedicated freight corridor to improve logistics

What steps has the government taken to create jobs?

Budget 2026 proposes a high-powered Education-to-Employment and Enterprise Committee, focusing on services exports, AI skills, and healthcare jobs. Tourism has been identified as a major employment driver, while university townships, STEM hostels for girls in every district, and caregiver training programmes aim to prepare the workforce for long-term growth.

How does Budget 2026 address inflation?

Inflation remains under control, with CPI at around 2 to 2.6%. This stable environment allows supportive monetary policy from the Reserve Bank of India, including a repo rate cut to 5.25%. The Budget also maintains fiscal discipline, targeting a fiscal deficit of 4.3% of GDP.

What is the government's growth outlook after Budget 2026?

The government expects GDP growth of around 7-8%, supported by low inflation, strong GST collections, infrastructure spending, and manufacturing incentives. The Govt has also boosted capital expenditure to Rs. 12.2 lakh crore