Have you ever wondered how your parents decide how much money to spend on toys, chocolates, and your school books? They make a “Home Budget.” Just like that, the Government of India makes a big plan every year called the Union Budget FY 2026-27.
On February 1, 2026, Finance Minister Nirmala Sitharaman shared this big piggy-bank plan with the whole country. Let’s look at the “cool stuff” and the “important changes” in a way that’s easy to understand!
Big Wins for Schools and Students
The government wants every child in India to be super smart and ready for the future. This year, they have kept aside a whopping ₹1.39 lakh crore just for education!
- New Creator Labs: Imagine making your own cartoons or video games at school! 15,000 schools will get “Content Creator Labs” to help kids learn digital skills.
- Girls’ Hostels: To make sure every girl can study science and math (STEM), the government will build at least one girls’ hostel in every single district.
- Space & Stars: For the little astronomers, new telescopes (including a huge Solar Telescope) are being set up so we can study the sun and stars better.
- University Townships: Big areas with many colleges and research centers will be built so students can learn and live together near big work hubs.
Faster Trains and Cleaner Travel
Do you like traveling by train? The Union Budget FY 2026-27 is making train rides even better and faster.
- High-Speed Rails: Seven new “Growth Corridors” (fast train routes) are planned. This includes routes like Mumbai–Pune and Hyderabad–Bengaluru.
- Green Travel: The government is focusing on making travel better for the environment. They want to use more waterways (boats!) and cleaner fuels.
- Seaplanes: Yes, planes that can land on water! The government is helping to make these in India to help people travel to beautiful, hidden places.
The “Pocket Money” for the Country
How much is the government planning to spend? Here is a quick look at the big numbers in our Union Budget FY 2026-27 table:
| What is it? | The Amount (Estimated) | What it means in simple words |
| Total Spending | ₹53.5 Lakh Crore | The total “Piggy Bank” for the whole country. |
| Education Budget | ₹1.39 Lakh Crore | Money for schools, teachers, and labs. |
| Infrastructure (Capex) | ₹12.2 Lakh Crore | Money for roads, bridges, and big buildings. |
| Fiscal Deficit | 4.3% | Like a small “loan” the country takes to grow faster. |
What about Mom and Dad’s Taxes?
You might hear your parents talking about “Income Tax.” Here is what changed for them:
- No Changes in Slabs: The tax rates (the part of money they give to the government) haven’t changed much this year.
- More Time to File: The government gave people a little more time to finish their “money homework” (filing returns) so they don’t have to rush.
- Travel and Study Abroad: If you want to go for a holiday abroad or study in another country, the “extra fee” (called TCS) has been reduced from 5% to just 2%. This makes it cheaper for families!
Future Tech and Healthy India
The Union Budget FY 2026-27 is also looking at how to make India a leader in technology.
- Semiconductor Mission 2.0: This is a plan to make the tiny “brains” (chips) that go inside your phones, TVs, and cars right here in India.
- Biopharma SHAKTI: A ₹10,000 crore plan to make better medicines and keep everyone healthy.
- Cancer Relief: The government has removed the tax on 17 important cancer medicines, making them much cheaper for people who need them.
Summary for Young Leaders
The Union Budget FY 2026-27 is all about three big duties (Kartavyas):
- Making the economy grow fast.
- Helping every person reach their dreams.
- Making sure everyone is included (Sabka Saath, Sabka Vikas).
By focusing on schools, technology, and faster travel, the government is trying to make India a “Viksit Bharat” (Developed India) by the time you grow up!