As India prepares for Union Budget 2026, expectations from the common man are once again at the centre of public discussion. With rising living costs, moderate income growth and persistent inflationary pressures, experts believe this budget presents an opportunity for the Finance Minister to directly ease the financial burden on salaried individuals, middle class families and small taxpayers. The focus, many say, should be on improving disposable income while maintaining fiscal discipline.
One of the biggest hopes revolves around income tax relief. Experts expect rationalisation of tax slabs or an increase in the basic exemption limit to help households cope with higher expenses. A hike in the standard deduction for salaried employees is also widely anticipated, as it would offer immediate relief without adding complexity to the tax system. There is also growing demand for further simplification of tax compliance so that filing returns becomes easier and less time consuming for ordinary citizens.
Housing continues to be another major area of expectation. With property prices and home loan interest rates remaining high, experts believe the budget could provide relief through higher tax deductions on home loan interest and principal repayment. Separate or enhanced limits for housing related deductions are being seen as a way to encourage first time home buyers and support the real estate sector while addressing a basic need of the common man.
Savings and investments are also expected to get attention. Financial planners hope for an increase in the Section 80C limit, which has remained unchanged for years despite inflation. A higher limit would encourage disciplined savings and provide tax relief at the same time. There are also expectations around more attractive incentives for retirement planning through schemes such as the National Pension System, especially as concerns around long term financial security continue to grow.
Healthcare costs remain a significant worry for Indian families, and experts feel the budget could address this through higher deductions on health insurance premiums and medical expenses. Such measures would not only provide tax relief but also encourage people to opt for adequate health coverage, reducing financial stress during medical emergencies.
Beyond taxation, the common man is also watching for steps to control inflation and boost employment. Increased government spending on infrastructure, manufacturing and small businesses is expected to generate jobs and improve income stability. Economists believe that a balanced approach combining growth focused spending with targeted tax relief could strengthen consumer confidence and overall economic momentum.
In essence, Budget 2026 is expected to strike a careful balance between growth and relief.
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