Budget 2026

Income Tax Exemption up to Rs 13 Lakh to Ayushman Bharat Expansion, Big Announcements Likely in Union Budget

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Union Budget: The upcoming Budget 2026 is set to offer major relief for the middle class, farmers, and seniors. The government is looking at several key announcements aimed at boosting consumption, enhancing rural incomes, and upgrading infrastructure. Key areas of focus for this budget are likely to include income tax, Kisan Samman Nidhi, railways, solar energy, and the health sector.

Income up to Rs 13 lakh can be tax free

In the new income tax framework, the standard deduction for salaried individuals might be raised to Rs 1 lakh. This change would make annual incomes up to Rs 13 lakh tax-exempt. Right now, incomes up to Rs 12.75 lakh are free from tax. The government aims to make the new tax system more appealing to encourage people to switch from the old one. This tax relief is expected to put more money in people’s pockets, which should help boost consumption and stimulate the economy.

Eye on increase in Kisan Samman Nidhi

The yearly support given to farmers through the PM Kisan Samman Nidhi Yojana could rise from Rs 6,000 to Rs 9,000. Farmer organizations have been pushing for this increase for quite some time. About 110 million farmer families benefit from this scheme. If the amount goes up, the government’s yearly spending could jump to around Rs 95,000 crore. This increase will directly assist farmers in meeting their small farming needs.

Big bet on railways, more than 300 new trains

The government plans to eliminate waiting lists for train bookings by 2030. To make this happen, over 300 Vande Bharat and Amrit Bharat trains might be introduced. Last budget, the Railways received a historic Rs 2.65 lakh crore. This time, the railway budget is also expected to grow, which will speed up projects like track expansion and adding more coaches.

Ayushman Bharat’s scope is likely to expand

Senior citizens over 60 years of age could be included in the Ayushman Bharat scheme. Currently, this benefit is limited to those over 70. Furthermore, the annual limit of free treatment of Rs 5 lakh could be increased to cover expensive treatments like cancer and heart surgery.