Supriya Pundir Rooted for the vision of “Viksit Bharat”, FM Nirmala Sitharaman presented the Union Budget 2026-27 on Feb 1 in the newly built Kartavya Bhawan. This budget is a framework for not only sustainable economic growth, but also for inclusive development of our nation through the three core Kartavyas-Accelerating Growth, Capacity Building, and Universal Access.
Union Budget 2026: Relief and Reforms for the Middle Class
The Union Budget 2026 introduces various measures that can directly impact the daily lives and finance budget of the middle class families, hence aiming for the improvement of “Ease of living” on a daily basis. Some of the main measures are as following:
- Infrastructure & Connectivity: A total of 7 High-Speed Rail corridors aka sustainable growth connectors (Mumbai to Pune, Pune to Hyderabad, Hyderabad-Bengaluru, Hyderabad to Chennai, Chennai to Bengaluru, Bengaluru to Varanasi, and Varanasi to Siliguri) have been announced for high-speed connectivity. The Public capital expenditure is projected to reach ₹17.1 lakh crore for the promotion of this passenger systems.
- Health & Care: A new “Care Ecosystem” is introduced in this union budget 2026 to train 1.5 lakh multiskilled caregivers for geriatric and allied care services.
- Tax Exemptions for Accident Victims: Interest awarded by the Motor Accident Claims Tribunal (MACT) to natural persons is now exempt from Income Tax, and related TDS has been abolished.
- Health Relief: For families battling high medical costs, the govt. has exempted Basic Customs Duty (BCD) on 17 cancer drugs, hence providing much-needed relief to them.
Middle-Class Perspective: What’s actually missing from Union Budget 2026?
Now let’s see what’s actually missing from this Union budget 2026 from a middle class common man’s perspective. So while the budget helps to develop “Viksit Bharat” with significant structural reforms and specific reliefs for various sectors, a deeper look from a middle-class perspective reveals areas that still feel underserved.
1. The Missing “Income Tax Slab” Relief
Despite the Ease of Living rhetoric neither the basic income tax slabs nor the standard deduction were significantly increased. The lack of direct tax-saving measures is a lost chance to increase disposable income for a middle class struggling with growing living expenses and inflation even if it is only moderate at ~7%.
2. Increased Burden on Small Investors
The Securities Transaction Tax (STT) on Futures is to be increased from 0.02% to 0.05% and on Options premium/exercise to 0.15% according to the proposed Union budget 2026. This “course correction” lowers net returns in a high-risk segment and creates a new barrier to entry for many middle-class people who have looked to the capital markets to build their wealth.
3. Mixed Signals on Savings (SGBs & PF)
The flexibility of one of the middle class’s preferred safe-haven investments is limited by the rationalization of Capital Gains exemptions for Sovereign Gold Bonds (SGBs) which now only apply to original subscribers held until maturity. The elimination of interest deductions against dividend and mutual fund income may also make it more difficult for retail investors to plan their taxes.
4. Infrastructure vs. Daily Commute
While high-speed rail corridors are visionary, these major hubs are not enough to address the everyday urban struggles of traffic congestion and the quality of public transportation in non-metropolitan areas. Although the emphasis on Tier II and III cities is welcome, the middle class frequently wants these large-scale initiatives to be accompanied by immediate improvements in local civic infrastructure.
Union Budget 2026: More “compliance-easing” than a “wealth-enhancing”
Budget 2026–2027 is undeniably future-forward, while emphasizing high-tech manufacturing and long-term stability. The middle class however perceives the budget as more of a “compliance-easing” than a “wealth-enhancing” endeavor. Although the move to a more straightforward automated tax system is a good thing, those who drive the country’s consumption are still upset about the lack of immediate tax rate relief.
Gagan Bharti 
