Union Budget 2026: Tax Relief, New Vande Bharat Trains, and Farmer Support Expected

NEW DELHI — Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2026 this Sunday, February 1. As the second full budget of the Modi 3.0 government, it arrives amid high hopes for economic stability and personal financial relief. Following the landmark reforms of 2025, which made income up to ₹12.75 lakh effectively tax-free, this year’s focus shifts toward fine-tuning the new tax regime and accelerating infrastructure.

The government aims to balance fiscal prudence with a strong push for public consumption. Moreover, with the Economic Survey 2025-26 projecting a healthy GDP growth of 7.4 per cent, the budget will likely prioritize job creation and manufacturing.

The salaried class remains the biggest stakeholder in every budget announcement. This year in the Union Budget 2026, reports strongly suggest a hike in the standard deduction from ₹75,000 to ₹1 lakh under the new regime. This move would provide an immediate boost to disposable income for millions of employees.

Additionally, experts anticipate a possible revision of the tax slabs for the ₹12–20 lakh income bracket. To encourage long-term equity participation, there are also calls to raise the LTCG exemption limit to ₹2 lakh. These adjustments would not only help taxpayers fight inflation but also simplify the transition to the new Income Tax Act, 2025, which takes effect on April 1, 2026.

Infrastructure remains the backbone of the government’s “Viksit Bharat” vision. The Indian Railways is expected to receive a massive capital outlay, potentially exceeding the previous ₹2.65 lakh crore. A primary goal is to eliminate waiting lists by 2030 through a significant fleet expansion.

To achieve this, the government may announce the introduction of 200 new Vande Bharat trains and 100 non-AC Amrit Bharat trains. These additions aim to provide world-class travel at affordable rates for common passengers. Furthermore, the budget will likely prioritize the rollout of the Kavach automatic train protection system to ensure zero-accident safety across the entire broad-gauge network.

The agricultural sector is expected to see a renewed focus on credit accessibility. Reports indicate the Kisan Credit Card (KCC) limit may rise from ₹5 lakh to ₹6 lakh. This increase provides farmers with the necessary capital to manage rising input costs and climate-resilient farming.

Furthermore, the budget may introduce targeted incentives for women farmers, whose participation in the workforce has risen to 64.4 per cent. By strengthening the Kisan Rin Portal for faster digital credit, the government hopes to modernize rural livelihoods and ensure food security for India’s 1.4 billion people.