Budget 2026 is expected to bring major relief for salaried taxpayers, farmers, and infrastructure development. According to reports, the government is considering increasing the standard deduction under the new income tax regime, a move that could make annual income of up to ₹13 lakh tax-free for salaried individuals.

Big relief for salaried taxpayers

Under the proposed changes, the standard deduction may be raised from ₹75,000 to ₹1 lakh in the new tax regime. If implemented, this revision would increase the tax-free income threshold from the current ₹12.75 lakh to ₹13 lakh. Industry bodies believe this step would significantly improve disposable income and encourage higher consumer spending.

The Confederation of Indian Industry (CII) has recommended such tax relief measures, stating that putting more money in the hands of taxpayers will boost consumption and provide momentum to economic growth. The government is also keen to promote the transition from the old tax regime to the simplified new tax structure.

Major push for railway infrastructure

Budget 2026 is also expected to focus heavily on railway expansion and modernization. Media reports suggest that the government is planning to introduce over 300 new trains, including Amrit Bharat and Vande Bharat services, to reduce long waiting lists—especially during peak travel seasons.

In the previous budget, Indian Railways received an allocation of ₹2.65 lakh crore, and the long-term goal is to eliminate passenger waiting lists entirely by 2030.

Boost for farmers through higher credit limit

Farmers may also receive a significant benefit in Budget 2026. The government is reportedly considering increasing the Kisan Credit Card (KCC) limit from ₹5 lakh to ₹6 lakh. This enhancement would help farmers better manage agricultural expenses, access affordable credit, and strengthen the rural economy.

What this means overall

If these proposals are announced, Budget 2026 could offer broad-based relief—higher tax savings for the middle class, improved railway connectivity, and stronger financial support for farmers. Together, these measures are expected to support economic growth, improve infrastructure, and ease financial pressure on households.