Tomorrow, Finance Minister Nirmala Sitharaman will present the Union Budget 2026–27. Today, the big question is: what is the common Indian expecting?
Did the latest Economic Survey change those expectations at all?
For India’s salaried middle class, the spotlight is—as always—firmly on income tax.
After last year’s overhaul and the new Income Tax Act coming into force this April, most taxpayers are not asking for another big shake‑up—they want targeted relief and stability.
"We really like the new tax regime, but the lack for proper standard deduction that tallies with our investments is still a worry," said 34-year-old software engineer from Bengaluru, Suraj B.
Across pre‑Budget discussions, three demands kept coming up:
One, a higher standard deduction, with many hoping it will rise from Rs 75,000 to at least Rs 1 lakh to offset inflation.
Two, smoother tax slabs, especially for incomes between Rs 12 lakh and Rs 20 lakh, so that take‑home pay doesn’t drop sharply at each jump.
Three, simpler TDS rules and fewer compliance surprises, so salaried households can plan monthly budgets without constant adjustments.
Experts across the board are of the opinion that sweeping slab cuts this time are highly unlikely, but even small tweaks—like fine‑tuning the new regime or restoring some indexation benefits—could make a noticeable difference to household finances.
Cost of living, savings, health
While many are looking at slabs and numbers, they are also looking for relief with everyday costs. Food, school fees, and healthcare remain key pain points.
Rama Kant, 38-year-old mother of two from Mumbai, said, "The tuition fee keeps increasing, prices keep going up, and it feels like the tax is also rising. We need solutions."
Pre‑Budget wishlists talk about higher deductions for health insurance and medical expenses, and better incentives for long‑term savings through PF, NPS and mutual funds.
With medical inflation rising, many families want the Budget to recognise hospital bills as a real financial shock, not a rare exception.
There is also demand for clearer, simpler rules on the new tax code so that ordinary taxpayers don’t need expert help just to stay compliant.
States, jobs and spending
At the macro level, attention is also on jobs and where the money goes.
This year’s Budget comes just before assembly elections in West Bengal, Tamil Nadu, Kerala, Assam, and Puducherry, and analysts expect more visibility for highways, logistics, urban projects and welfare schemes in these states.
For young job‑seekers and small businesses, the hope is that higher capital expenditure, MSME support and targeted schemes in poll‑bound regions will translate into real employment, not just big announcements.
Impact of the Economic Survey
The Economic Survey 2025–26, tabled this week, painted an upbeat picture—projecting real GDP growth of about 7.4 per cent this year and 6.8–7.2 per cent next year, and highlighting strong services exports and stable inflation.
But on the ground, this optimism has not yet altered what the common man is asking for: relief from high living costs, simpler tax rules, and even more secure jobs.
Pre‑Budget discussions reveal that households still judge the Budget less by growth charts and stock market fluctuations and more by what changes in their monthly salary slip and expenses.
So, all eyes will be on Finance Minister Nirmala Sitharaman as she tables the Union Budget 2026 tomorrow, February 1, a Sunday. Let us hope that at least some of these needs of the common Indian will be addressed then.
