What Is the Union Budget? Guide To Facts And Changes Ft. Nidhi Nagar

What Is The Union Budget: Every year, the Union Budget plays a major role in shaping the country’s economy and directly impacts citizens’ daily lives. Many people hear about the budget but don’t fully understand what it actually means. The Union Budget is the government’s financial roadmap for the year ahead. It outlines how money will be earned, how it will be spent, and what changes citizens can expect in areas like taxes, welfare schemes, and infrastructure development. This is our series ‘Budget And Her’, where we look at the budget from a woman’s perspective. This campaign is in collaboration with DigiWhistle (@digiwhistle). In an exclusive with HerZindagi, finance content creator Nidhi Nagar shared what is Union Budget and how it affects people’s salary, savings, and future planning:

What Is The Union Budget?

The Union Budget of India is the annual financial statement of the Central Government, detailing its estimated revenue and expenditure for a specific financial year (April 1 to March 31) presented by the Finance Minister in Parliament on February 1st. This Union Budget will be presented by Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman on February 1, 2026, Sunday. The Union Budget is an annual financial plan presented by the Government, explaining:

• Where the government’s money will come from

• How much money will be spent

• Which sectors will receive priority

5 Major Changes Seen In The Union Budget Over The Years

Nidhi Nagar shared that, over time, the Union Budget has gone through several important changes to simplify systems and support economic growth. Here are some of the most significant ones:

1. GST: A Landmark Reform In 2017

One of the biggest changes came in 2017 with the introduction of Goods and Services Tax (GST).

Before GST:

• Different indirect taxes existed such as Excise Duty, VAT, and Service Tax

• Tax rules varied across states, making business complex

After GST:

• 17+ indirect taxes were merged into one single tax

• It became easier to do business across the country

• Tax compliance became more transparent and organised

2. Railway Budget Merged With Union Budget

Earlier, the Railway Budget was presented separately from the Union Budget.

In 2017, the government merged both budgets to:

• Improve financial planning

• Ensure better use of funds

• Allow coordinated spending from a single source

This move helped align railway development with national infrastructure goals.

3. Tax Reforms Under The New Tax Regime

One of the most talked-about changes came in last year’s budget.

New Tax Regime:

• Income up to Rs 12 lakh was made tax-free

• This significantly reduced the tax burden on the middle class

• Simplified tax calculations for salaried individuals

Many experts even called it a step towards a near tax-free structure for a large section of citizens.

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4. Special Focus On Women’s Welfare

Nidhi Nagar explained, “Women’s development has become a major priority in recent budgets. Key highlights include:

• An additional Rs 4.49 lakh crore allocated for women-focused schemes

• This is 37% more than the previous year

• Funds support health, education, safety, and employment programmes”

ALSO READ- Budget 2026: Date, Time And Where To Watch The Union Budget Speech Live

5. Shift From Subsidies To Infrastructure Development

Another important shift is the government’s move from subsidies to capital expenditure.

The focus is now on:

• Roads and highways

• Railways and transport

• Ports and logistics

This strategy aims to:

• Create long-term job opportunities

• Support youth employment

• Strengthen economic growth through infrastructure

Understanding Union Budget changes helps citizens make better financial decisions and stay informed about the nation’s economic direction.

For more such stories, stay tuned to HerZindagi. 

Image credit: Freepik