As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026 on February 1st, the air is thick with anticipation. With the Indian economy projected to grow between 6.8% and 7.2%, the government is expected to pivot toward boosting domestic consumption and modernizing infrastructure.
From significant tax relief to a massive overhaul of the railway network, here are the five major announcements likely to define this year’s budget.
1. Income Tax: Effective Tax-Free Income up to ₹13 Lakh
The biggest headline for the middle class is a potential hike in the standard deduction. Reports suggest the government may increase the deduction from ₹75,000 to ₹1 lakh under the new tax regime.
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The Math: Coupled with the existing rebate, this move would effectively make annual income up to ₹13 lakh tax-free for salaried individuals.
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The Logic: The Confederation of Indian Industry (CII) has pushed for this to increase "disposable income," helping families cope with the rising cost of living while incentivizing the shift to the new tax system.
2. Indian Railways: 300+ New Trains to End Waiting Lists
If you have ever struggled with a "waiting list" ticket, the Union Budget 2026 may have the solution. The government is expected to announce over 300 new trains, focusing heavily on the Amrit Bharat and Vande Bharat series.
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Vande Bharat Sleeper: The much-awaited sleeper versions for long-distance travel are slated for a massive rollout.
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Infrastructure Goal: With a likely allocation exceeding ₹2.75 lakh crore, the mission is to eliminate waiting lists entirely by 2030 through track expansion and rapid production of rakes.
3. PM-Kisan Samman Nidhi: 50% Hike for Farmers
To support the rural economy, the annual payout under the PM-Kisan scheme is expected to rise from ₹6,000 to ₹9,000 per year.
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Why now? The amount has remained stagnant since 2019. With inflation eroding the value of the original ₹6,000, farmer organizations and parliamentary committees have advocated for a boost to help cover rising fertilizer and seed costs.
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Impact: Approximately 11 crore farmer families will see an immediate increase in their bank accounts.
4. PM Surya Ghar Scheme: Higher Subsidies for Solar Power
The government’s push for green energy is getting a financial "power-up." The budget may increase the subsidy for 2 KW solar panel systems from ₹30,000 per KW to ₹40,000 per KW.
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Total Savings: This change would mean a household installing a 2 KW system could receive a ₹80,000 subsidy, significantly lowering the upfront cost.
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Target: The goal is to reach 1 crore households by 2027, turning residential rooftops into mini-power plants that eliminate electricity bills.
5. Ayushman Bharat: Healthcare for All Seniors (60+)
In a major step toward universal health coverage, the Ayushman Bharat (PM-JAY) scheme is expected to expand its eligibility.
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New Age Limit: Currently, the scheme covers seniors above 70. The budget may lower this to 60 years and above.
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Increased Cover: There are also talks of increasing the ₹5 lakh annual limit specifically for critical illnesses like cancer, ensuring that the elderly don't have to exhaust their life savings on hospital bills.
Conclusion: What This Means for You
The Union Budget 2026 appears to be a balanced act between fiscal discipline and social welfare. By putting more money in the hands of the salaried class, supporting farmers, and revolutionizing travel, the government is signaling a "Viksit Bharat" (Developed India) focus.
