Budget 2026-27: Major Tax Reforms and Government Finances

The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, includes significant changes to tax laws and details about government finances.

For individuals, penalties and prosecutions for tax evasion have been made less severe, with lower jail terms and fines based on the amount of tax evaded.

For businesses, the Minimum Alternate Tax (MAT) has been redesigned to be a final tax, and a tax holiday up to 2047 has been announced for foreign companies using Indian data centres.

The budget also outlines the government's sources of income and expenses, with a focus on fiscal discipline and long-term growth.

The government's finances come from various sources like borrowings, income tax, corporation tax, and GST.

The expenses include state's share of taxes, interest payments, defence, and subsidies.

The budget has received mixed reactions, with some praising the focus on development and others criticizing the lack of relief for the common man.