Union Finance Minister Nirmala Sitharaman has presented the Union Budget for the year 2026-27 in Parliament. In the Finance Minister’s budget, emphasis has been laid on Artificial Intelligence, Commerce, Agriculture and serious diseases. The government has made major changes in many rules to exports, to overcome the challenges of American tariffs, generosity has been shown towards trade in the budget. The Finance Minister has announced several schemes for the commercial crops of Tamil Nadu and other coastal states. Information to what gifts Nirmala Sitharaman has given to other states is also coming to light.
 

The government has estimated that the country’s growth rate will be around 7 percent. The government has focused on domestic manufacturing capabilities, schemes benefiting citizens, public investment, monetary stability, fiscal deficit, structural reforms. In response to US President Donald Trump’s tariffs, the Finance Minister has said to focus on our manufacturing sector. Let us know what grants have been received by the central states-

What did the states get in the central government budget?

Finance Minister Nirmala Sitharaman has made a provision to provide Rs 1.4 lakh crore to the states for the year 2026-27 (FY 27 i.e. from April 2026 to March 2027) as per the suggestions of the Finance Commission. This money is given in the name of Finance Commission Grants. This is additional help given to the states from the Centre. This amount has been released for rural bodies, urban local bodies and disaster management. Financial assistance has been given to village panchayats, municipal corporations, municipalities and states to deal with disasters like floods, droughts and earthquakes.

Finance Minister Nirmala Sitharaman has informed that on 17 November 2025, the 16th Finance Commission had submitted its report to the President. Now under Article 281 of the Constitution, the action taken report on the recommendations of the Commission will be presented to the Government in Parliament. Finance Minister Nirmala Sitharaman has announced that the government has agreed to keep the share given to the states at 41 percent only. The Finance Commission had made this recommendation.

‘As per the recommendation of the Commission, I have given ₹1.4 lakh crore to the states for FY 2026-27 as Finance Commission grant,’ the Finance Minister said in his budget speech. These include rural and urban local bodies and disaster management grants.

How will the government deal with the debt?

In the Union Budget, the government has tried to keep the debt under control, so that less money is spent on interest and more can be spent on development works. The target is that by the year 2030-31 the debt of the central government should remain 50 percent of the GDP. According to the revised estimates in the year 2025-26, debt is 56.1% of GDP. It is estimated in the budget of 2026-27 that debt may reach 55.6 percent of GDP. It is decreasing a little.

What happened to fiscal deficit?

Nirmala Sitharaman said that the government had promised in 2021-22 that the fiscal deficit would come down to below 4.5 percent of GDP by 2025-26, which has been fulfilled. In the year 2025-26 it is at 4.4 percent. Now the target is to further reduce it to 4.3 percent in 2026-27. It is clear from the statement of the Finance Minister that now the government is borrowing less, the debt burden is gradually decreasing. Due to this, less interest will have to be paid in the future and the government will be able to focus more on development. The revised estimates for 2025-26 show that the government’s earnings, without borrowing, are about Rs 34 lakh crore. The total expenditure is around Rs 49.6 lakh crore. In this, capital expenditure will be invested in areas like roads, railways, factories.