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February 02, 2026 February 02, 2026 - Current affairs for all the Exams: Union Budget 2026-27: Historic Sunday Presentation, Capex Surge, and New Tax Act Implementation

Finance Minister Nirmala Sitharaman presented India’s first-ever Sunday Union Budget for 2026-27, featuring a record ₹12.2 lakh crore capital expenditure, a 15% hike in defence spending, and the announcement of the New Tax Act to be implemented from April 1, 2026.

In a historic move, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on Sunday, February 1, 2026. This marks her ninth consecutive budget and the first time in Indian history that the national budget was unveiled on a Sunday. The budget is framed as a long-term blueprint for Viksit Bharat 2047, balancing aggressive infrastructure growth with fiscal prudence.

1. Key Highlights of Union Budget 2026-27

  • Capital Expenditure (Capex): The government has increased the Capex outlay to ₹12.2 lakh crore, up from ₹11.2 lakh crore last year, to drive infrastructure-led growth.

  • Defence Outlay: Reflecting heightened national security priorities, the defence budget was hiked by 15% to ₹7.8 lakh crore ($85 billion).

  • New Tax Act: While income tax slabs remained unchanged for the current session, the Minister announced the implementation of the New Tax Act starting April 1, 2026, aimed at simplifying tax administration.

  • Securities Transaction Tax (STT): To discourage speculative trading, STT on Futures was raised to 0.05% and on Options to 0.15%. This led to a nearly 2% dip in the Nifty and Sensex during a special Sunday trading session.

  • Rare Earth Corridors: Dedicated corridors will be established in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to reduce dependency on critical mineral imports.

2. Major National Schemes and Initiatives

  • Biopharma Shakti: A new scheme with an outlay of ₹10,000 crore was launched to transform India into a global biopharma hub, focusing on biologicals and non-communicable diseases.

  • Pradhan Mantri Kaushal Unnati Yojana (PMKUY): Launched on Feb 1, this flagship scheme aims to bridge the skill gap for rural youth in emerging sectors like green energy and digital tech.

  • SHE Marts: Community-owned retail shops will be set up for women entrepreneurs from Self-Help Groups (SHGs) to boost rural livelihoods.

  • CHAKRA Centre of Excellence: State Bank of India (SBI) launched 'CHAKRA' to facilitate financing for eight sunrise sectors, including Green Hydrogen and Semiconductors.

3. International Relations and Environment

  • Project Green Corridor: India, Japan, and Australia signed a landmark trilateral agreement to establish a sustainable energy supply chain across the Indo-Pacific by 2035.

  • Ramsar Sites: The Ministry of Environment announced the addition of two new wetlands to India’s Ramsar network ahead of World Wetlands Day (Feb 2), further expanding India’s conservation footprint.

  • Energy Diplomacy: Reports indicate a strategic shift as India prepares to resume Venezuelan oil purchases following U.S. policy adjustments, potentially replacing some Russian imports.

4. Sports and Miscellaneous

  • Cricket: India clinched the five-match T20I series against New Zealand 4-1 after a 46-run victory in the final match at Thiruvananthapuram.

  • Tennis: Carlos Alcaraz made history by winning the Australian Open, becoming the youngest man to complete a career Grand Slam at age 22.

  • Disaster Update: An earthquake of 4.6 magnitude was reported in the Kashmir region on the morning of February 2, 2026; no immediate casualties were reported.

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