Budget 2026: Key Highlights and What It Means for the Common Man

Finance Minister presents Union Budget 2026 with major tax relief, infrastructure push, and focus on rural development. Here's everything you need to know.

Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 in Parliament today, unveiling a balanced approach between fiscal prudence and growth stimulus. The budget focuses on middle-class tax relief, infrastructure development, and boosting consumption.

Tax Relief Measures

The most anticipated announcement was the revision of income tax slabs under the new regime:

The standard deduction has been increased from ₹75,000 to ₹1 lakh, providing additional relief to salaried employees.

Infrastructure Push

• Capital Expenditure: ₹12.5 lakh crore allocated for infrastructure
• Railways: ₹3.2 lakh crore for rail network expansion
• Highways: Target of 15,000 km new highways
• Airports: 25 new airports under UDAN scheme

Agriculture and Rural Development

• MSP increase of 8% for major crops
• ₹2 lakh crore for PM-KISAN with increased installments
• 50 lakh new PM Awas Yojana houses
• Free electricity for farmers with solar pump subsidy

Healthcare Allocation

• Ayushman Bharat coverage extended to senior citizens above 70
• 200 new medical colleges in Tier-2 and Tier-3 cities
• ₹90,000 crore for health infrastructure

Key Takeaways for Different Segments

For Salaried Individuals:

• Higher take-home salary due to revised slabs
• NPS contribution limit increased to ₹1 lakh for additional deduction

For Businesses:

• Corporate tax remains unchanged at 22%
• MSME credit guarantee scheme extended
• Simplified GST compliance for small businesses

For Investors:

• Long-term capital gains tax threshold increased
• No changes in STT
• Sovereign Green Bonds issuance of ₹50,000 crore

Fiscal Outlook

The government has projected a fiscal deficit of 4.5% of GDP, down from 4.9% in the current year. The focus on capital expenditure over revenue expenditure signals the government's intent to crowd in private investment.

Opposition Response

Opposition parties criticized the budget as "election-oriented" given the upcoming state elections. However, industry bodies like CII and FICCI welcomed the balanced approach.

The budget reflects the government's attempt to balance growth with fiscal consolidation while providing relief to the middle class ahead of a crucial electoral year.