Union Budget 2026: For investors, a boring budget is a beautiful thing

Synopsis On budget day, investors and savers will notice that life goes on as usual. Despite some tweaks in tax regulations and the investment arena, there are no dramatic upheavals. The updates include slight modifications to the securities transaction tax affecting equity derivatives and capital gains on sovereign gold bonds. Meanwhile, the emphasis on nurturing a vibrant corporate bond market persists. Four years ago, writing my budget column, I opened with: "It's 4 pm on budget day, and there's nothing much to say any more. That's a good thing, actually." I could write the same line today, but it's not even 3 pm. For investors and savers, a boring budget is a beautiful thing. Watch the financial media today, and you'll see anchors and influencers working overtime to manufacture drama where none exists. Some are being inventive to the point of fiction, desperately hunting for angles that will get clicks and views. Budget 2026 Live Your 2-minute guide to becoming a Budget pro Check what gets cheaper and costlier in Budget this year How far has India come since the last money manual The truth is less exciting: when it comes to personal finance and investments, this budget changes very little. After years of significant shifts, the new tax regime, the ₹12 lakh tax-free threshold, and capital gains adjustments, we appear to have reached a period of consolidation. That's not a failure of imagination on the finance minister's part. It's good governance. That said, a few changes deserve mention, such as the securities transaction tax on equity derivatives. STT on futures has jumped from 0.02% to 0.05%, and on options premiums to 0.15% from the earlier rates. I wrote in 2024 about the government's concern with derivatives speculation, comparing STT increases to statutory warnings on cigarette packets-the hardcore addicts know what they're doing, they understand the odds are stacked against them, but most cannot help themselves. Whether this will work remains to be seen. The other notable change concerns the exemption from capital gains tax on sovereign gold bonds, which has been tightened.. If you've been buying SGBs from the secondary market as a tax-efficient gold play, you'll need to see if it still makes sense. One item in the finance minister's speech made me smile, if a bit wearily. Once again, we heard about fostering a vigorous corporate bond market in India. The thing is, a vibrant bond market cannot be magicked into existence through policy announcements. It requires underlying bonds that are fit for purpose-trustworthy credit ratings, genuine liquidity, transparent pricing, and issuers that retail investors can trust. It doesn't matter how many times it features in budget speeches. For the average saver putting money into mutual funds and building a retirement corpus, life continues much as before. I realise this makes for a rather dull budget column. But after years of writing about shifts and changes and new regimes, I find myself grateful for the dullness. When your financial columnist has little to say, that's usually a sign that your money is in a stable environment. The real work of building wealth happens not through budget bonanzas but the quiet discipline of saving regularly, keeping costs low, and staying invested through market cycles. (You can now subscribe to our Economic Times WhatsApp channel) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.) Have derivatives joined cigarettes & whiskey in the sin club? Make in India 2.0 gets a Budget boost for job creation How Budget’s digital blueprint marks a shift from concrete to code Budget 2026: Tax holiday extension to boost GIFT City’s global appeal Hindustan Zinc has a silver lining. But for how long? EU trade pact: Should Tata, Mahindra worry about ‘European invasion’? 1 2 3