Union Budget 2026: Govt targets lower debt, backs city regions and social initiatives

Finance Minister Nirmala Sitharaman on Sunday, under the Union Budget 2026-27, proposed to lower the Centre’s debt-to-GDP ratio to 55.6 per cent in FY27, from 56.1 per cent in the current fiscal.

Presenting the Budget in the Lok Sabha, Sitharaman announced an allocation of Rs 5,000 crore over five years for CITY Economic Regions (CERs) to spur urban-led growth.

She also said the government has accepted the recommendations of the 16th Finance Commission, retaining the 41% tax devolution formula for states.


The Budget further proposes a scheme to develop the Buddhist circuit in the Northeast, focusing on preservation of temples and monasteries.

In addition, the government will support the Artificial Limbs Manufacturing Corporation of India (ALIMCO) to scale up production of assistive devices for divyangjan.