Budget 2026 Expectations: Officials ‘Locked In’ for Five Days as Halwa Ceremony Marks Final Preparations

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026-27 on 1 February, marking her ninth budget. Preparations are underway following the traditional Halwa Ceremony, which signals the final stage of budget formulation. This year’s budget comes at a challenging time for the Indian economy, with 50% tariffs imposed on Indian goods by the US and foreign investors showing signs of selling in domestic markets. Every sector has expectations from the upcoming budget.

Halwa Ceremony and the Lock-In Period

The Halwa Ceremony, held at North Block, is an annual tradition where Finance Ministry officials and staff involved in preparing the budget are served the ceremonial sweet, marking the conclusion of final preparations. Following the ceremony, these officials remain “locked in” for five days, staying in the basement of North Block, cut off from the outside world, until the budget is formally presented in Parliament. This practice ensures strict confidentiality.

Changes in Budget Traditions

Since the Modi government took office in 2014, several budget-related practices have evolved:

• The Railway Budget merged with the General Budget in 2017.
• The presentation date was shifted to 1 February.
• Since 2021, the entire budget process has become digital.

Budget Printing

All budget documents are now printed at the special government press in North Block. Previously, printing was done at the Rashtrapati Bhavan, but a 1950 leak led to relocation first to Minto Road and then, in 1980, to North Block. Printing was once a labor-intensive process requiring staff to stay at the press for two weeks

Stock Market Sentiment

Ahead of the budget session, the stock markets showed positive momentum:

• BSE Sensex opened at 82,460.44, up 602.96 points (0.74%).
• NSE Nifty 50 rose 174.90 points (0.69%) to 25,350.30.

Key Budget Expectations

State Demands – Following consecutive quarters of strong GDP growth, some states have requested special financial assistance from the central government to offset declining revenues.

Defence Budget – Analysts expect a 10% increase in capital expenditure for the defence sector, boosting India’s push for self-reliance and increasing defence exports.

Gold and Jewellery Sector – Rising gold prices have made import duties a sensitive issue. The sector awaits decisions on import tariffs in this year’s budget.

Economic Survey – Traditionally presented on 31 January, this year’s survey will be tabled on 29 January at 11 AM, providing insights into India’s fiscal and macroeconomic outlook.

Real Estate Sector – Developers are urging the government to raise the home loan interest deduction limit from ₹2 lakh to ₹5 lakh, aiming to boost affordability and housing demand.

The Budget 2026 is expected to address multiple sectors amid global economic pressures, setting the stage for India’s fiscal roadmap for the coming year.