As the budget deadline approaches, the expectations of ordinary working people and middle-class families are rising. Let's find out what the Indian middle class hopes for the government...

The middle class expects major relief on taxes, housing, and jobs, learn details

Budget 2026 Expectations: As the budget deadline approaches, the expectations of ordinary working people and middle-class families are rising. The budget, presented annually on February 1st, not only provides information about government expenditures and revenues, but also impacts people's salaries, taxes, and savings. This is why the entire nation is focused on the Finance Minister's speech on this day. 

The Union Budget 2026-27, to be presented on February 1, 2026, is considered significant in many ways. This is the last budget to be presented under the current Income Tax Act. The government is preparing to implement the new Income Tax Act 2025 from the next financial year, which will change decades-old tax rules. This is why taxpayers are expecting many major reliefs from this budget. Let's find out what the Indian middle class has in store for the government...

Expect relief on housing and health expenses.

Amid rising inflation, housing and medical expenses are becoming the most burdensome for the common man. Taxpayers are hoping that, along with changes to the tax slabs, the government will provide relief by providing exemptions on essential daily expenses. The current home loan interest deduction of up to ₹2 lakh is considered too low compared to rising property prices.

The middle class is also demanding that if the government moves forward with the new tax regime, it should include some important deductions. In particular, the middle class is hoping for tax breaks related to health insurance and home loans, so that people can save and invest for medical and housing needs without excessive pressure.

Expectations of taxpayers trapped in the old tax system

In the last budget, the government announced a new tax regime to provide relief to taxpayers. Incomes up to ₹12 lakh were declared tax-free. However, taxpayers who still adhere to the old tax system and consider it more reliable began to feel neglected.

Taxpayers following the old tax regime rely on savings instruments like pension funds, insurance, and home loans. They hope the government will increase the basic exemption limit, which is currently at ₹2.5 lakh. Furthermore, the limit under Section 80C, which is currently set at ₹1.5 lakh, is also expected to be raised. Taxpayers hope the government will increase this limit to ₹2 lakh.  

High hopes for employment 

The middle class has high hopes for employment in Budget 2026. They hope the government will prioritize employment and skill development in Budget 2026. This will create new jobs, benefiting the middle class. Increased employment will boost household income. Furthermore, if the government focuses on youth with MSME loans, many new avenues for self-employment could open up.