Reserve Bank of India

♦ Reserve Bank of India Governor Sanjay Malhotra on 6 February 2026 announced that the Monetary Policy Committee (MPC) has unanimously decided to keep the policy repo rate unchanged at 5.25 percent while maintaining a neutral policy stance. The Governor said India’s economic activity is expected to hold up well in 2026–27. 

♦ The RBI Governor noted that despite global headwinds, India’s economy continues on a steadily improving trajectory, with real GDP growth expected to reach 7.4 percent in 2025–26, supported by private consumption and fixed investment. However, net external demand remained a drag on growth, as imports continued to outpace exports. Real Gross Value Added (GVA) growth for the year is estimated at 7.3 percent, driven largely by services and a revival in manufacturing.

Union Budget 2026-27

Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman presented the Union Budget 2026-27 for the ninth consecutive year in Parliament on 1 February 2026. The budget proposes a grand total expenditure of Rs.53.47 lakh crore, comprising Rs.41.25 lakh crore in revenue expenditure and Rs.12.22 lakh crore in capital expenditure.

Ministry-wise allocations..

Finance ministry: The ministry of finance has received the largest allocation of Rs.19.72 lakh crore, including Rs.17.22 lakh crore for revenue expenditure and Rs.2.50 lakh crore for capital expenditure.

Defence ministry: The ministry of defence has been allocated Rs.7.85 lakh crore, comprising Rs.5.54 lakh crore in revenue expenditure and Rs.2.31 lakh crore in capital outlay.

Ministry of home affairs: The ministry of home affairs received Rs.2.55 lakh crore, including Rs.2.28 lakh crore in revenue expenditure and Rs 0.27 lakh crore in capital spending.

Ministry of agriculture and farmers welfare: The ministry of agriculture and farmers welfare has been allocated Rs.1.40 lakh crore. The allocation supports farmer income enhancement, agri-tech initiatives such as Bharat-VISTAAR, crop diversification, allied activities and rural livelihoods.

Ministry of consumer affairs, food and public distribution: With an allocation of Rs.2.39 lakh crore, the ministry remains one of the largest social-sector spenders. The funding, largely revenue expenditure, supports food subsidies, procurement, storage and distribution under the public distribution system.

Ministry of rural development: The ministry of rural development has been allotted Rs.1.97 lakh crore, supporting flagship schemes such as rural housing and livelihood programmes.

Ministry of jal shakti: The ministry of jal shakti received Rs.94,80 crore, supporting drinking water supply, sanitation and irrigation projects.

Ministry of education: The ministry of education has been allocated Rs.1.39 lakh crore, largely for revenue expenditure on schools, higher education, research and capacity building, including initiatives for girls’ hostels and STEM education.

Ministry of health and family welfare: The ministry of health and family welfare received Rs.1.07 lakh crore, supporting healthcare delivery systems, institutions and public health infrastructure.

Ministry of road transport and highways: The ministry of road transport and highways has been allocated Rs.3.10 lakh crore, with the bulk of the spending directed towards capital expenditure, underlining the continued push for highways, logistics efficiency and connectivity.

Ministry of railways: The ministry of railways received Rs.2.81 lakh crore, largely for capital outlay to support network expansion, station redevelopment and modernisation.

Ministry of housing and urban affairs: The ministry of housing and urban affairs has been allotted Rs.85,522 crore, supporting urban transport, housing, sanitation and city infrastructure.

Ministry of chemicals and fertilisers: The ministry of chemicals and fertilisers received Rs.1.77 lakh crore, largely towards fertiliser subsidies and support to farmers.

Power and renewable energy: The ministry of power was allocated Rs.29,996 crore, while the ministry of new and renewable energy received Rs 32,914 crore, supporting energy security and clean power transition.

Electronics and information technology: The ministry of electronics and Information Technology has been allocated Rs.21,632crore, supporting digital public infrastructure, electronics manufacturing and technology-driven governance.

Commerce and industry: The ministry of commerce and industry received Rs.17,843 crore, aligning with export promotion, industrial growth and manufacturing support.

Other ministries..

The ministry of women and child development has been allocated Rs.28,183 crore, supporting programmes related to nutrition, maternal and child welfare, and women’s empowerment.

The ministry of tribal affairs received Rs.15,421 crore to strengthen education, livelihoods and welfare initiatives for tribal communities, while the ministry of social justice and empowerment was also allotted Rs.15,357 crore.

The ministry of youth afairs and sports received Rs.4,479 crore, while the ministry of skill development and entrepreneurship was allocated Rs.9,885 crore, supporting skilling, employability and youth-focused programmes.