Budget 2026-27 preparation to begin on October 9: Finance Ministry

Sep 3, 2025

Synopsis
India's finance ministry is set to begin crafting the Union Budget for 2026-27 amidst new US tariffs and global economic uncertainties, starting October 9. The budget aims to navigate these challenges while advancing reforms to boost growth and employment. Ministries are urged to provide realistic projections and align allocations with approved plans, avoiding liability transfers between Finance Commission cycles.

The finance ministry will start work on the Union Budget for 2026-27 from October 9, according to a circular issued by the Department of Economic Affairs.

The exercise comes against the backdrop of an additional 50% US tariff on most Indian goods and other external headwinds. These have raised risks to India's growth and jobs outlook, prompting calls for stronger support to the export sector.

The uncertainties triggered by the tariff and global factors are expected to shape budget preparations this year. Through the Budget, the government will look not just to steer through these challenges but also to build on its pledge of next-generation reforms to sustain high growth momentum and employment creation.

"Realistic projection for Revised Estimates (for) 2025-26 and Budget Estimates (for) 2026-27 is a pre-requisite," the circular said. "Proper expenditure estimation by ministries/departments would obviate the need for routine/frequent mid-year re-appropriations. Minimal mid-year additional resource requirements/mid-year re-appropriations reflect good budgeting," it added.

With 2026-27 marking the first year of the 16th Finance Commission cycle, ministries and departments have to ensure allocations sought in the budget estimates are in line with the approval of the competent authority, it said. Any transfer of liabilities from the current FC cycle to the next will not be allowed unless specifically approved.

[The Economic Times]