UNION BUDGET 2026-27: Redefining Ease of Doing Business
The Union Budget placed in Parliament every year is not a mere annual statement of accounts. It is a mirror of national intent. The Union Budget 2026–27 arrives at a moment when India’s growth story is no longer a promise but a responsibility. The Budget speech in the Parliament by Hon’ble Finance Minister of India signals a quiet yet meaningful change in the way the State engages with citizens and businesses. It does not rely on grand announcements instead it focuses on removing everyday obstacles that slow people and businesses down. The Government of India has laid out a series of measures that reduce paperwork, simplify compliance and place trust at the centre of governance. These steps are about making daily life easier for ordinary people as much as they are about improving business conditions.
The Budget has placed strong emphasis on Ease of Doing Business and Ease of Living by simplifying taxes, lowering compliance and promoting trust-based systems. It allows Persons Resident Outside India (PROIs) to invest in listed Indian companies through the Portfolio Investment Scheme and exempts interest awarded by the Motor Accident Claims Tribunal from Income Tax. The Tax collected at source under the Liberalised Remittance Scheme for education, medical treatment and overseas travel has been reduced to 2 percent while Tax Deducted at Source on manpower services has been rationalised.
Small taxpayers can now obtain automated lower or nil Tax Deducted at Source certificates, submit Form 15G and Form 15H through depositories and revise Income Tax Returns up to 31 March. Property transactions by non-residents are simplified and a one-time foreign asset disclosure window is introduced for small holdings.
Decriminalization of minor defaults, immunity from prosecution and dispute settlement options reflect a shift from punishment to compliance. The Minimum Alternate Tax is simplified, buyback taxation clarified, and customs digitized through a single cargo window and the Customs Integrated System, making governance simpler and more citizen-friendly.
The Union Territory of J&K is also implementing the same philosophy through its Compliance Reduction and Deregulation Reforms. The focus here too is on simplification, transparency and trust-based systems.
In the construction and industrial sectors J&K has replaced manual scrutiny with Auto-DCR systems. Building plans are now checked online as per the rules and approvals that once took months are now being granted in days.
Small businesses in J&K stand to gain the most. Shops can now be registered in a single day without inspections based only on a self-declaration. Road width norms have been rationalized so that home-based and small MSMEs can operate legally. Labour laws have been updated to allow flexible working hours and safer night shifts for women while reducing unnecessary registration requirements for very small establishments.
The spirit of the Union Budget’s trust-based approach is also visible in J&K’s recently promulgated Jan Vishwas Ordinance. By removing imprisonment for minor regulatory offences and replacing them with graded fines the Government of J&K has shifted from punishment to proportionality. The aim is to encourage voluntary compliance.
Together these national and local reforms mark a transition from a system built on approvals and inspections to one built on rules and technology. Ease of doing business is no longer a distant goal measured by rankings. It is becoming a daily experience with fewer visits to offices, fewer forms and eventually fewer delays. Ease of living in turn is about restoring time, dignity and more importantly trust to citizens.
This is how reform process succeeds not through grand speeches but through small, consistent changes that make governance simpler, fairer, and more human.
Dr Arun Manhas, Director Industries & Commerce, Jammu
