0:00 This year, my expectation from the budget is zero. Middle class didn't get anything in this budget. It was just about increasing taxes, nothing else. Look at the market, the market is below 1000 points. Often after looking at the budget, the condition of the country is like this. Because on the day of the budget, the number of economists suddenly increases in the country. But this budget was quite different from the last few budgets. Because after this budget, if someone is going to be the saddest, then he is an investor. This year, the focus was not on freebies. It was not even on tax reduction. This year, the focus was on capital expenditure. Such plans were made which can benefit the country in the long term. I don't want your condition to be like this. This budget is also very important budget, very
0:46 nice budget, very best budget. So let's understand Budget 2026, but in a simple language. Let's understand. 1st February is a very important day for India. Because on this day, every person in the country can give the exact answer to these questions by reading just one document. Because today, our Finance Minister presents Union Budget.
1:32 Don't worry, I am a CA and I can confidently say that the budget is not as difficult as it seems. You just have to understand some concepts. Today, our target is to make the budget so simple that even a 10-year-old child can understand it and ask the right question. Because from this one document, we get to know 3 topics. Where is the government going to earn money? Where is the government going to spend money? And what is the government's vision for economic growth? And if you understand these 3 topics, then you can become a smart and responsible citizen. At the end of the video, we will definitely ask such questions to the government. So support us for the next few minutes. Let's understand in an entertaining way what Budget 2026 is. Your time is important. And if you want to know about numbers directly, then skip to this timestamp.
2:19 You will get direct answers on our channel. No nonsense. If you want simple answers to complex things, then subscribe to our channel. It will only take you 2 seconds, but with this, we get the courage to make such videos about economics. Do you know what is India's problem? That there is no one who can explain important things like budget in simple language. Let's take an example. You live in a joint family. In your family, your father is in charge. And mother takes care of all the expenses. Every member of the family does some or the other profession. You all bring your salary to your mother on the first day of the month. And then you talk during dinner about what important expenses are going to come. Younger brother says, I haven't gone out for
3:05 a long time. Let's go to Manali. Elder brother says, I am getting married this year. I have to prepare for it. Expenses are also going to be there. Father says, first see that the roof of the house is dripping. And then mother decides what are the priorities of the house. In which things should the house money be spent first? That's it. This is what happens in budget in simple language. A country is a big family. Where all citizens contribute as taxes. And everyone's demand is different. Everyone's priority is different. But the government has to decide what is urgent and what is not. What is the country's priority and which things can be stopped. And for this, unlimited money is not there. By the way, how is the edit looking so far?
3:50 Today is Sunday and our entire edit team is working on Sunday. So that we can present you the budget with good animations. If you want to encourage our team, then write good editing in the comments below. Now if we talk about the budget, there are three different types of budgets. The first is surplus budget. Where your income is more and expenses are less. The second is balanced budget. Where your expenses match your income. The third is deficit budget. Where your expenses are much more than your income. It is very difficult for a government to run a surplus budget. Because the job of the government is to take projects for the good of the country. Government's objective is not to earn profit and fill the treasury. Government has to spend for the good of people. Till date, our first budget has been a
4:36 surplus budget. Balanced budget is not practical. At the same time, running a very big deficit budget is not in the interest of the country. If we talk about last year, our total income was 34,96,409 crores. And the total expenditure was 50,65,345 crores. That is, we spend more and the income is less. How can expenses be more than income? Where will this difference come from? From borrowing. Central government has to borrow money so that it can fulfill all the expenses. This is called national debt. So far, you have understood the major concepts. Three types of budget. Income, expenses and borrowings. In a budget, it is discussed where the country's income will come from.
5:22 Where money will be allocated for the country's expenses. And what will be the difference in income and expenses. That is the Indian budget explained. Chapter 2. How to make a budget? Let's understand the timeline. The new financial year starts on April 1, which ends on March 31 next year. Now, the budget coming in 2026 will be applied from April 1, 2026 to March 31, 2027. Now, no one can predict all the expenses in the future 100% accurately. So, a prediction is made. And to make a prediction correctly, you need data. A lot of data. Its collection started in September of last year.
6:07 In September, the finance ministry releases a circular. This circular goes to every ministry and they are asked what are your big projects next year. Where are your expenses going to be next year? Then by December, all the ministries submit their requirements called Demands for Grants. In January, the process of locking things starts. And when the budget is completely locked, what happens? Halwa is made. I am not joking. Literally. This is called Halwa Ceremony. And once the Halwa Ceremony is over, the budget is locked. And after this, every member of the finance ministry is also locked. No media interaction, nothing until the budget is officially released. So that the details of the budget do not leak in the market.
6:53 And no one tries to mess with the stock market. On January 29, an economic survey is released. Where we get answers to all the important questions. Here we get to know how the country's economy is actually running. Here we get all the data. And on February 1, the budget for the coming financial year is declared every year. This whole process is like our family dinner. Every member of the family was asked, what do you want? What are your plans? What are your priorities? Then mom decided where to spend and where not to spend. Where to spend this year and where to spend for a while. And then the budget of India was decided. Are you clear now?
7:39 Now you don't need to be a CA to understand this much. Even a 10-year-old child can understand this. And our mission is to make knowledge more accessible. So that you become an informed citizen and ask the right questions. If you liked our mission, then press that like button. Let's keep the target of 50,000 likes. Let's see how many people support our mission. Chapter 3, Incomes and Expenses Let's imagine that if our country earns 1 rupee in a year, then where does this 1 rupee come from? If our country's income is 1 rupee, then what are its constituents? Corporation tax is 18 paise. Income tax is 21 paise. GST and other taxes are 18 paise. Customs is 4 paise. Union Excise Duty is 6 paise.
8:26 Non-tax revenues are 10 paise. Non-debt capital receipts are 2 paise. And even after doing this, we have to borrow 24 paise. Because all our expenses don't meet. This year, it is assumed that our total receipts will be 36,51,000 crore rupees. And total expenses will be 53,47,000 crore rupees. And the difference in this, we have to borrow that much. Which is 16,95,000 crore rupees. Looking at a budget, we come to know that the country does not have unlimited money. Even after paying our taxes, all the expenses of the country are not covered. Because the country has to build roads, railways,
9:12 IIMs, IITs, plus we have to pay the salaries of our soldiers and government employees. And to cover all these expenses, we have to borrow. That is, whoever does not pay taxes, does not harm the country in any way. No matter how angry you are with the country, there is no solution to not paying taxes. There is only one solution that our taxes should be used properly. For this, the next details are very important. And in the same way, we understand where the expenses are going to be. Let's see where the government is going to spend the most money. No. 1 The most money will go to the Ministry of Finance. That's rupees 19,72,000 crores. And out of this, the interest payments are 14,03,000 crores.
9:57 The Ministry of Finance transfers some money back to the state governments. This amount is 3,94,000 crores. No. 2 The Ministry of Defence has 7,84 ,000 crores. Out of which, defence pensions is 1,71 ,000 crores. And capital expenditure is rupees 2,19,000 crores. It is hoped that all this money should not be spent only on imports. And Indian manufacturers should also benefit from this. No. 3 The Ministry of Roads and Highways has received rupees 3,09,000 crores. Which will be used for majorly new construction. But Indian citizens have 0% driving skills. I don't know when the Ministry will focus on this. Because I haven't seen any money on driver education in the budget. No. 4 Railways received rupees 2,81,000 crores.
10:44 Which will be spent on majorly capital expenses. Because the truth is that whatever revenue the railways receive, they can barely meet their revenue expenses. About which we have talked in this video. So train, tracks, signal upgrades have to be funded by the centre. No. 5 Ministry of Consumer Affairs and Public Distribution has received rupees 2,39,000 crores. Out of which, MSP subsidy is rupees 2 ,28,000 crores. No. 6 Ministry of Home Affairs has received rupees 2,55,000 crores. Which will be spent on majorly police forces and union territories. No. 7 Rural Development Ministry has received rupees 1 ,97,000 crores. Out of which, Old and New Manrega Scheme and PM Gram Sadak Yojana are included. No. 8 Ministry of Chemicals and Fertilizers has received
11:30 rupees 1,70,000 crores. Which will be spent almost entirely on fertilizer subsidy. No. 9 Ministry of Agriculture has received rupees 1 ,40,000 crores. Out of which, crop insurance, interest subsidy and PM Kisan Scheme will be spent almost 98 ,300 crores. And 10,000 crores will not be spent on agricultural research. No. 10 Education will be spent on rupees 1 ,39,000 crores. This is only at the level of the centre. That is, it will be spent on Central University, Navodaya University, Scholarships, etc. Now, let's look at some more important fields. Department of Atomic Energy has received rupees 24 ,000 crores. Out of which, almost 10,000 crores is capital expenditure to build new atomic power plants. As usual, ISRO has received only 13,000 crores.
12:16 For context, Department of Posts has received 27 ,000 crores. That is ISRO's double. We spend money to cover the losses of the post department. But we are not able to save money for vital industries like space. Today, our home-grown navigation navigation is in danger. Satellite launches are failing again and again. And in spite of that, we are not able to increase funding for ISRO, i.e. space. This is a very sad thing. This year's budget focused on long-term reforms. The benefit of which is going to be very less in the short term. But if things go well, India can benefit in the long term. India's textile industry has been greatly impacted due to Trump's tariffs. If our clothes are expensive, America's buyers will not buy from us, but from countries like Bangladesh.
13:02 So, this year, big announcements were made to give relief to the textile industry in the budget. Like National Fibre Scheme for Self-Reliance. This will focus on both natural and man -made fibres. A plan is being made to modernize textile factories. There will be a National Handloom and Handicrafts Mission, which will provide support to our weavers and artisans. We always say that the focus is on the North states and the South gets only... But this year, something different happened. Understanding the importance of rare earth minerals, the dedicated Rare Earth Corridor will get support. States like Andhra Pradesh, Odisha, Kerala and Tamil Nadu will get this support. This will benefit India in the sectors like smartphones, EVs and defence. Because we will be able to reduce import
13:48 dependency. This is a big announcement because it is very important for the national interest. And it also addresses a bad habit of the government. That full support to the North and nothing to the South. This year, the focus is on the cities. 7 high-speed rail corridors are being built. Mumbai to Pune, Pune to Hyderabad, Hyderabad to Bengaluru, Hyderabad to Chennai, Chennai to Bengaluru, Delhi to Varanasi, Varanasi to Siliguri. To develop city-based infrastructure, 5,000 crores have been allocated in the next 5 years. In these, the focus will be on tier 2 and tier 3 cities. The focus will be on temple towns. Now that so much money is being allocated, we can only hope that all this money is not spent only on building concrete roads.
14:35 Spend a little money on footpaths, public spaces and parks. Only then will the quality of life improve. Only then will it be fun. Often you must have seen that NRIs come to India and do all their medical work. Some go to the dentist, some get minor surgeries done. It is true that the doctors in India are very talented. And in our healthcare, there is quality and low cost. That is, there is already affordability with quality in India. Taking advantage of this, we talked about promoting medical tourism. Five medical tourism hubs will be developed with a private partnership. It is a good thing that tourism is being focused on. It is a good thing that medical infrastructure is being upgraded. And we are talking about serving not only the people of India but also outsiders.
15:22 And whenever a tourist comes to India, he first meets a tourist guide. If that tourist guide is good, then the image of India will also be good. That is why the program to train tourist guides is going to be made with the help of IIM. In which 10,000 tourist guides will be upgraded. Our tour guides are the face of Indian tourism. We will have to train them properly so that they can become good hosts for foreign tourists. If a foreign tourist has a good experience after coming to India, then the brand of India also gets help and the tourism sector is also promoted. We can give the world a world-class trekking and hiking experience. In which we will focus on Himachal Pradesh, Uttarakhand, Jammu and Kashmir. In Odisha, Karnataka, Kerala, there are turtle nesting
16:07 sites, on which tourism will be promoted by focusing. In the Northeast, Buddhist circuits will be promoted to promote tourism. States like Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, Tripura will benefit from this. By promoting the tourism industry, employment also increases. And very importantly, the dollars that we need come to India. I am happy to tell you that there is also talk of mental health in this budget. There is no big national institute in North India that focuses on mental health. So in North India, NIMHANS 2 will be established. And there will be regional hubs in Ranchi and Tezpur. All of these are great ideas, but if you have noticed, then it will take time to execute all these ideas. None of these things will happen in a
16:53 year. So these are very long-term, noble plans. But what difference does it make to make such big announcements, if we are going to get beaten up in execution? After hearing all this, are you happy with this year's budget? Let's discuss in the comments. Chapter 4 Conclusion Now at the end of the video, I want to understand your understanding. Expenses are of two types. Capital expenses and revenue expenses. Capital expenses are those expenses that happen once and from which an asset is made. And revenue expenses are repeating expenses. For example, if you install solar panels in your house, then it becomes a capital expense for you. Because you will spend this expense only once. And you will get its benefit for the coming months and years.
17:40 Now that is an asset. Spend once and benefit for a long period. And revenue expenses are recurring expenses. For example, your gas bill, electricity bill, bike's salary etc. All these expenses are also important. But none of these expenses make an asset. If you pay the electricity bill this month, it doesn't mean that you will get electricity free next month. These bills will come every month. These are revenue expenses. Now the question for you is, how will you divide the different expenses of the country? I will give you a list of different expenses. And you will tell me which are the capital expenses and which are the revenue expenses. Scholarships for students. Salaries to government employees. Rafale jets for Indian Air Force.
18:27 Funding atomic energy power plants. Fertilizer subsidies. Construction of New Ames Hospital. Improving railway signaling systems. Now that you have heard all these things, we will pause the video and you tell me which expenses should go where. These are the correct answers. Now you tell me how many of these correct answers you were able to predict. Comment below and be honest. In the beginning of the video, we said that we will ask some questions. So here we go. Do you know what is the problem of India? The analysis done by India, the detailed reports made by India, even their own people don't read it. People who can actually take action on this. For example, the Economic Survey of India, where our people identified the actual problems of India. One of those problems is falling rupee.
19:13 Why is rupee falling consistently compared to dollar? In the economic survey, not once but repeatedly mentioned that till we don't become globally competitive, till our exports don't increase, till the agricultural sector doesn't reform, till then we will be dependent on foreign remittances and foreign investment. But in the budget session, not much was mentioned about this. If we don't talk about the problem, how will we be able to solve it? Let it be our attitude, ignore the problem and keep doing it. That's it. In this video, we took the example of a family and understood how the budget works. If a family has to fulfill all the needs of the house, then it is the responsibility of every member of the house. That means every ministry. Every ministry has to identify the most important
19:59 problems of its department. It has to think about how much money is going to be spent to solve that problem. And it has to prioritize it and send it to the finance ministry. For example, Indians are terrible drivers. RTO reforms, driver education comes under the Ministry of Road Transport. If they don't prioritize it, then the finance ministry can't do anything. The allocations of the Ministry of External Affairs will never understand me. Bangladesh has become an openly hostile neighbor in the last few years. Every day it gives a statement against India. But still, we have given them an aid of 60 crore rupees in the budget. I don't even understand. They don't even pay our electricity bills on time. This is your and my money. I am actually quite disappointed about the 15 ,000 content creation labs in schools.
20:47 The economic survey actually flagged off screen addiction. But we are giving phones in the hands of children. We can't give proper education here. Teachers don't have the skills. Schools are collapsing. But we will teach content creation to children. This doesn't seem like a solution. This is just a policy announced to make headlines. Next point. Why doesn't the government say that life is easy for the middle class? But the income tax refunds of the same middle class have been stuck for a long time. Without any reason. Now, how is this fair? And as always, there was no plan to increase the tax base in this budget. It feels like only a few people honestly follow the rules. Pay taxes. File income tax returns. Take all the money from them. Markets have been falling for so many months.
21:33 FIIs are withdrawing money due to geopolitical uncertainty. But nothing happened in the budget. People were expecting that the capital gains tax will be reduced a little. But the STT was increased on futures and options. And the markets have reacted badly. Overall, it seems that the whole country relies on the people who are productive. But when will the people who are not productive, who cheat the system, who do cash only dealings, who do bribery, bear the proportional burden? I know that the economy is in a very difficult mode. Geopolitically, the situation is very delicate. And I also know that the finance ministry cannot solve all these challenges. The rest of the ministries, state governments and municipalities also have a hand in this.
22:19 But there are some things that the finance ministry exclusively handles. And the income tax department is one of them. If you got value from this video and got something new to learn, then subscribe to the channel. Let's see how many people support the vision of simplifying our education. Because you don't want to miss out on complicated things like the budget.
