New Delhi, Feb. 4 --

The Union Budget 2026 has seen mixed reactions from various sources. As a finance entrepreneur Girish Lakhotiya explains what you should know about the annual exercise.



Simply put, the Union Budget is the government's annual plan.



It explains how money will be raised - through taxes and borrowings and how it will be spent for the welfare of citizens.



In India, the word "Budget" is familiar to everyone.



For decades, it was an event people waited for eagerly.



What will become cheaper?
What will become costlier?
Who gains and who loses?



From the middle class to large business houses, the Budget affected daily life.



It was largely seen as a price signal - a once-a-year reset button.



But that idea has been changing.



Union Budget 2026 marks the moment when this change becomes clearly visible.



The Budget's Quiet Evolution



This shift did not happen overnight.



Early on, this government signalled that it wanted to change how budgets work.



One symbolic but important step was merging the Railway Budget with the main Union Budget. Earlier, the Railway Budget was presented separately and often became a tool of political bargaining. Its merger removed that distortion and brought transparency and discipline.



Another major change came with the creation of the GST Council.



Indirect tax decisions moved away from dramatic Budget announcements to a rules-based, federal system. Tax rates stopped being yearly political surprises and became outcomes of a structured process.



Slowly, the Union Budget stopped being the main source of tax shocks and giveaways.
Governance, institutions, and long-term thinking began to matter more than annual tinkering.



Budget 2026 is the logical outcome of this journey.



What Makes Budget 2026 Different



Traditionally, every Budget answered two questions:



Budget 2026 begins somewhere else.



For the first time, the Finance Minister framed the Budget around three clearly stated Kartavya (duties):



These are not slogans placed for effect.



Each Kartavya is linked to measurable outcomes, focused capital allocation, and institutional responsibility.



This is important because it changes the role of the Budget itself.
The Budget moves from being only a fiscal document to becoming a governance framework .
When objectives are clearly defined, policy stops reacting to headlines.



It starts moving with direction.



From Accounting to Architecture



Every great nation begins with vision.



When Dubai was being built, the process did not start with tax breaks or subsidies. It started with a long-term vision, followed by infrastructure creation, regulatory clarity, and capital mobilisation. The State acted as an architect, not a micromanager.



Budget 2026 reflects elements of that thinking.
The government is not trying to run markets.
It is trying to design conditions where markets, cities, and citizens can scale responsibly.
India today needs more than annual adjustments.



It needs clarity on where it wants to stand in global capital markets, how cities will finance their growth, and how household savings can participate in nation-building.



Once that vision is clearly stated, annual budgets naturally become execution documents - not political spectacles.



The Bottom Line



Union Budget 2026 marks a clear shift in fiscal philosophy.
From revenue and expenditure to vision and outcomes .
From yearly accounting to national Kartavya .
This is not a populist Budget.
It is a directional one.



For a $5-trillion-plus economy with long-term ambitions, the real question is no longer what the Budget gives you this year.



The real question is whether it prepares India to compete and lead - a decade from now.



That distinction matters far more than any single tax break or subsidy.



And it is a Budget mindset India has long needed.



About the Author



Girish Lakhotiya is the Chief Executive Officer of Prachay Capital, where he focuses on long-term capital strategy, policy analysis, and investment frameworks aligned with India's growth trajectory. With a keen interest in fiscal policy, governance reforms, and macroeconomic trends, he offers insights on how institutional design, capital allocation, and regulatory clarity can shape India's economic future and global positioning.



Views expressed above are the author's own and do not reflect the publication's views.



Published by HT Digital Content Services with permission from PNN.