Budget 2026: Key facts and details you should know before February 1

As India waits for the Union Budget 2026–27, public attention once again turns to Sansad Bhawan, North Block, and the many traditions that surround one of the country’s most important annual events. Beyond tax announcements and spending plans, the Union Budget follows a detailed constitutional, administrative, and ceremonial process that reflects both governance and legacy.

Here’s a clear and simple guide to everything you need to know about the Union Budget, how it is prepared, presented, and followed up.

What Is the Union Budget of India and Why Does It Matter So Much?

The Union Budget of India, officially called the Annual Financial Statement, is prepared under Article 112 of the Indian Constitution. It lays out the government’s estimated revenues and planned expenditures for the upcoming financial year.


The Department of Revenue handles income sources such as taxes and duties, while the Department of Expenditure manages how funds will be spent. Together, the Budget acts as a financial roadmap, aligning government spending with policy goals, economic growth, welfare programmes, and infrastructure priorities.

Why the Union Budget Is Presented on February 1 Every Year

The Union Budget is presented on February 1 so that it can be debated, passed, and implemented before the new financial year begins on April 1.

Earlier, the Budget was presented on the last working day of February. This changed in 2017, when then Finance Minister Arun Jaitley announced the shift to an earlier date, allowing ministries more time to roll out schemes and spending plans.

Who Prepares the Union Budget Behind the Scenes?

The Budget is prepared by the Budget Division of the Department of Economic Affairs, which functions under the Ministry of Finance. It coordinates with various ministries, state governments, and departments to finalise estimates, allocations, and policy priorities.

Finance Bill, Appropriation Bill, and Parliamentary Approval Explained Simply

The Union Budget is introduced through the Finance Bill, which proposes changes in taxation and fiscal laws.

For the Budget to come into effect, the Appropriation Bill must be passed by the Lok Sabha, authorising the government to withdraw funds from the Consolidated Fund of India starting April 1.

Live Telecast of the Union Budget and Where You Can Watch It

The Union Budget presentation is telecast live from Sansad Bhawan on Sansad TV, with live coverage also available on The Economic Times.

The Finance Minister’s speech usually runs from 11 AM to around 1 PM, followed by expert panel discussions analysing key announcements, benefits, and possible gaps. Official Budget documents are also released on the government’s website and the Union Budget mobile app.

Why the Rail Budget Is No Longer Presented Separately

The Rail Budget, which had been presented separately since 1924, was merged with the Union Budget in 2016. The move aimed to streamline financial planning and avoid fragmentation of government expenditure.

How Many Budgets Has India Seen Since Independence?

Since 1947, India has presented:

• 73 annual budgets
• 14 interim budgets
• 4 special or mini-budgets

Each reflects the political, economic, and social priorities of its time.

Why the Union Budget Is Presented at 11 AM and Not 5 PM

Until 1999, the Union Budget was presented at 5 PM, a colonial-era practice aligned with British timings.

This changed when Yashwant Sinha, then Finance Minister, presented the Budget at 11 AM in 1999. The timing became standard from 2001 onwards.

The Halwa Ceremony: Sweet Start to the Budget Lock-In

About a week before Budget Day, the Finance Ministry holds the traditional Halwa ceremony. A large batch of halwa is prepared and served to officials involved in Budget preparation.

The ceremony marks the beginning of the lock-in period, during which officials remain isolated in North Block to maintain secrecy. The Finance Minister personally serves the halwa, symbolising goodwill before a major national task.

What Is the Budget Lock-In Period and Why Is It Important?

The lock-in period ensures that Budget details are not leaked before the official announcement. Officials involved in printing and finalising documents stay inside the Budget Press at North Block until the Finance Minister finishes the Budget speech.

Since 2021, with the shift to a digital Budget, the lock-in period has reduced to about five days, compared to nearly two weeks earlier.

From North Block Basement to Digital India: How Budget Printing Changed

For nearly 40 years (1980–2020), Budget documents were printed in the basement of North Block.

Today, the Budget is largely paperless, with most documents released digitally through official platforms. Only a limited number of physical copies are printed.

From Leather Briefcase to Bahi-Khata: A Symbolic Shift

For decades, Finance Ministers carried the Budget in a traditional leather briefcase, a practice started by India’s first Finance Minister R. K. Shanmukham Chetty.

On 5 July 2019, Finance Minister Nirmala Sitharaman broke tradition by carrying the Budget in a Bahi-Khata, an Indian-style accounting ledger. In 2021, she presented India’s first paperless Budget using a tablet wrapped in a bahi-khata-style cover.

Why the Finance Minister Meets the President Before Budget Day

On the morning of February 1, the Finance Minister meets the President of India at Rashtrapati Bhavan to seek formal assent before presenting the Budget.

As per tradition, the President offers curd and sugar, considered a symbol of good luck before an important task.

Cabinet Meeting in Sansad Bhawan Before Budget Presentation

A meeting of the Union Cabinet is held at 10 AM on Budget Day at Sansad Bhawan. Once the Cabinet approves the proposals, the Finance Minister proceeds to Parliament to present the Union Budget.

Post-Budget Press Conference: What Happens After the Speech Ends

After the Budget speech, the Finance Minister, along with Ministers of State for Finance and senior officials, addresses the media in a Post-Budget Press Conference.

They explain key announcements, clarify policy details, and answer questions from journalists.

Why the Finance Minister Briefs the RBI After the Budget

Following the Budget, the Finance Minister addresses the Reserve Bank of India’s central board, outlining fiscal consolidation plans, capital expenditure targets, and broader economic priorities. This interaction helps align fiscal and monetary policy outlooks.

As Budget 2026–27 Nears, What Should Citizens Watch Closely?

As February 1 approaches, attention will be on:

• Tax relief measures
• Fiscal deficit targets
• Capital expenditure plans
• Welfare spending and infrastructure push
• Signals on economic growth and inflation

While the numbers matter, the process, planning, and traditions behind the Union Budget remain just as significant, shaping how India plans its future every single year.

Inputs from agencies