Union Budget 2026 focuses on growth, manufacturing and fiscal stability, but concerns rise over limited relief for middle class, farmers and small investors in India
Pradeep Kumar Biswal
In the past, the presentation of the annual budget was an occasion for the citizens to wait anxiously for the bonanza it used to offer in terms of direct and indirect tax reliefs. Budget is not a statement of income and expenditure, but is an expression of the government’s priorities for the people. It is more a political statement than a mere game of figures.
In this context, the 2026 Union Budget, presented on February 1, has sparked a heated debate regarding whether the “common man” has been left behind in favour of the government’s priorities for macroeconomic stability and industrial growth. While the government framed the budget around the vision of Viksit Bharat (Developed India) and high-value manufacturing, critics and citizens alike have pointed out several “missing” priorities for the middle class and the poor.
The primary criticism stems from the lack of direct relief measures that typically impact the daily life of the citizens. There were no changes to income tax slabs or rates, and the standard deduction remained unchanged for the second consecutive year. For the salaried class battling inflation, this felt like a missed opportunity for boosting disposable income. The pensioners are equally worried about being ignored by the government in getting any benefits. This leaves many feeling their financial burden remains unchanged.
Many critics argue that the budget presented by Nirmala Sitharaman lacks a concrete roadmap to curb rising food and fuel prices affecting the common man. Most people don’t feel any easing in their immediate cost of living. While fiscal deficit targets were met (projected at 4.3%), many feel the “macro-math” doesn’t translate to “micro-relief” at the grocery store.
Although the budget has focused on Semiconductor Mission 2.0 and Biopharma Shakti, these are capital-intensive, high-skill sectors. There is a concern that the budget doesn’t provide enough for immediate, large-scale employment for the semi-skilled youth whose numbers are higher than the high-skilled workforce.
The hike in Securities Transaction Tax (STT) on Futures & Options (from 0.02% to 0.05% for futures) and new taxes on secondary market Sovereign Gold Bonds (SGBs) have hit retail investors who were using these avenues for savings. There is a feeling that the budget burdens the small investors more than benefitting them.
Although in a country like India, large numbers of people depend on agriculture and allied sectors, the budget doesn’t offer any immediate benefit in terms of subsidies or loan waivers as in the past. They are feeling ignored in the process. The government’s policy to double the income of the farmers is lacking due diligence.
Some of the critics argue that the government spending on social sectors like health and education is inadequate in relation to the needs and influence of inflation. It would indirectly impact the common man. The budget is therefore dubbed as insensitive towards widespread public needs.
To be fair, the government has given priority to long-term investments and developmental needs with a futuristic approach and ignored short-term benefits for the citizens. This is a bold decision by the government when an election is not on the horizon.
One has to admit that there has been a paradigm shift in the focus of the budget in pushing long-term goals other than appeasing different segments of society through populist measures. If the economy continues to grow in the right direction, then it will indirectly benefit the people and improve their quality of life. The future will finally judge the decision of the government to go for a futuristic model of budgeting.
(Pradeep Biswal, retired IAS Officer, is a bilingual poet writing both in Odia and English. His poems are widely anthologized. He is also an editor and translator of repute. Views expressed are Personal)