Union Budget

The Union Budget is the annual financial statement of the Government of India — presented by the Finance Minister to Parliament typically on February 1 each year (changed from the last day of February in 2017) — detailing the government's estimated revenues, planned expenditures, taxation proposals, and economic policy priorities for the upcoming financial year (April 1 to March 31). The Union Budget consists of two parts: the Revenue Budget (covering revenue receipts from taxes and non-tax sources, and revenue expenditure on salaries, interest, and subsidies) and the Capital Budget (covering capital receipts from borrowings and disinvestment, and capital expenditure on infrastructure, defence, and asset creation). Key budget metrics tracked by investors include the Fiscal Deficit (gap between total expenditure and total revenue receipts, expressed as a percentage of GDP — the government's borrowing requirement), the Revenue Deficit, capital expenditure allocation, and sector-specific spending priorities. The Union Budget is the single most market-moving annual event for Indian equity investors — changes to capital gains tax rates, Securities Transaction Tax, import duties on key commodities, corporate tax provisions, and sector-specific investment allocations (infrastructure PLI schemes, defence capex, digital initiatives) directly impact corporate earnings, sector valuations, and broad market direction. Budget day trading volumes on NSE and BSE are typically 2x to 3x the normal daily average, with Nifty 50 and sector indices experiencing sharp moves in response to key Budget announcements.