India Union Budget 2026 Boosts Capital Expenditure and Defence While Keeping Income Tax Slabs Steady

Finance Minister Nirmala Sitharaman presented the Union Budget 2026, highlighting a big push to capital expenditure and defence, with a significant increase in spending for infrastructure projects and military procurement to strengthen national security and growth.

Income Tax Slabs remain unchanged in the 2026 budget, with the Finance Ministry confirming no revision to existing tax brackets for any income level, preserving the current structure for all taxpayers.

Rs 1 Lakh Threshold is introduced for certain tax benefits, as outlined in budget documents, offering rebates on savings and investment income up to that amount and aiming to ease the tax burden for middle‑income earners.

Industry Leaders have called for policy continuity and bold reforms, noting the budget’s capex focus as a positive signal for manufacturing expansion, job creation and long‑term economic stability, while urging swift implementation of insolvency law updates.