With only a few days left for the presentation of the Union Budget 2026-27, the attention of the middle class in the country is completely focused on the budget. Due to rising inflation, increasing house prices, healthcare expenses, and limited job opportunities, middle-class families are looking to the government with great expectations for relief. This year's budget is considered important in many ways, as it will be the last budget presented under the current income tax law. Against the backdrop of the new income tax law coming into effect from 2025, taxpayers' expectations have increased further.
In the last budget, the government provided significant relief through the new tax regime. It was announced that income up to 12 lakh rupees would be tax-free. However, taxpayers adopting the old tax regime did not receive the expected concessions. Taxpayers relying on savings schemes like PF, insurance, and home loans have more confidence in the old tax regime. Therefore, they expect the basic exemption limit to be increased from 2.5 lakh in this year's budget. Additionally, there is a strong demand to increase the limit of 1.5 lakh rupees under Section 80C to at least 2 lakh rupees.
Against the backdrop of inflation, household and healthcare expenses are becoming a headache for the middle class. Currently, the 2 lakh rupee concession on home loan interest is deemed insufficient by home buyers. Considering the rising property prices, there is an expectation to increase this limit. Additionally, there is a demand for more tax relief on health insurance and medical expenses.
In terms of employment, the expectations of the middle class are high. It is expected that schemes promoting job creation, skill development, and the MSME sector will be announced in the 2026 budget. It is believed that providing loan facilities and encouraging self-employment for the youth will help improve the economic situation. There is also an expectation expressed in this budget for more health-related concessions and tax relief on medical expenses for senior citizens. Overall, the entire nation is focused on how much relief Budget 2026 provides to the middle class.