(Budget to be presented by FM nirmala sitharaman on February 1, 2026 — her ninth consecutive Budget presentation)
1. MSMEs Get a Bigger Push
MSMEs (Micro, Small & Medium Enterprises) are expected to remain a prime focus, with calls for policy support, credit access improvements and payment reforms to boost employment and exports. industry bodies have stressed that MSMEs need relief and incentives to grow and stay competitive.
2. Credit & Classification Support for Small Businesses
In recent budgets, measures like expanded credit guarantee schemes and revised MSME classification limits have helped small enterprises access capital and expand. The Budget 2026 is likely to build on this foundation, with emphasis on enhanced credit flows and financial inclusion for micro and small firms.
3. Affordable Housing Boost
Affordable and mid‑income housing has been on the government’s agenda. Previous measures included support under programmes such as PM Awas Yojana Urban 2.0 with multi‑lakh crore outlays, and analysts expect the Budget 2026 to pursue further housing initiatives aimed at lower and middle‑income families.
4. Rural Jobs and Livelihood Schemes
Rural employment is likely to be revamped with a possible transition from wage‑based schemes like MGNREGS towards broader livelihood and skill‑linked missions such as the proposed Viksit Bharat Guarantee for Rozgar and Ajeevika Mission, aiming to integrate employment with income generation and skilling.
5. Strengthening Skill Development & youth Employability
Expansion of schemes like the PM Internship Scheme (PMIS) — potentially increasing age eligibility, stipend and industry engagement — signals a push toward skills, employability and youth job creation across sectors.
6. Consumption, Investment & Growth Priorities
Beyond sectoral support, the Budget is widely expected to focus on boosting consumption (a big driver of economic growth), infrastructure investment and capital expenditure to sustain demand and create jobs.
7. Balanced Policy with Tech, Tax & Reforms
Alongside targeted sector support, analysts also highlight expectations for broader reforms in taxation, green growth initiatives, technology adoption (like AI), manufacturing support, and financial savings measures — all aimed at making the economy more competitive and inclusive.
💡 In short: The Union Budget 2026 is shaping up as a multi‑front strategy — strengthening small business and credit, boosting affordable housing, reimagining rural employment schemes, and supporting youth skilling, all while keeping growth and reform at the core under FM Nirmala Sitharaman’s leadership.
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