The expectations of the middle class regarding taxes were not fulfilled in the third budget of Modi 3.0. Standard deduction did not increase, but due to removal of duty on 17 essential medicines and reduction in custom duty, shoes, slippers and smartphones will become cheaper.
Budget 2026 Latest Updates: Finance Minister Nirmala Sitharaman presented her 9th consecutive budget on Sunday, February 1. The general public had a lot of expectations from this budget, but it does not seem to be directly benefiting the farmers, the elderly or the taxpayers. Apart from this, this year there are assembly elections in states like West Bengal, Tamil Nadu, Kerala, Assam and Puducherry, yet no separate special scheme was announced for them in the budget. Do you know who got what in this budget?
1- For middle class
- The middle class did not get much relief on tax related expectations in the third budget of Modi 3.0. People expected that the standard deduction limit would be increased from Rs 75,000 to Rs 1 lakh, but no such announcement was made in the budget. Overall, no major changes or new exemptions related to income tax were given in the budget.
- However, there are some announcements which will not directly but indirectly benefit the middle class. For example, custom duty on 17 essential medicines including cancer and sugar has been completely abolished. With this decision the prices of these medicines will reduce and treatment will become cheaper.
- The government has also announced reduction in custom duty on many products in the budget. Its direct benefit will be on things used in everyday life, such as:
- Shoes and slippers, smartphones, clothes, electric vehicles, microwave ovens, leather products and other items of middle class consumption.
2- What for farmers and agriculture sector?
The Finance Minister did not make any major announcement directly for the farmers in his budget speech. Farmers were hopeful that the government would increase the amount of Kisan Samman Nidhi from Rs 6000 to Rs 9000 annually. However, some important announcements have been made regarding the agriculture sector. Their objective is to increase the income of farmers, create new employment opportunities and modernize farming.
- Credit-Linked Subsidy Program
The government will launch a credit-linked subsidy program to increase employment opportunities in the animal husbandry sector. Under this scheme, financial assistance will be given to milk production, poultry and other animal based businesses, which will increase employment in rural areas. The budget has announced modernization of dairy, poultry and animal businesses.
- High-value crops will get special support
The government has emphasized on promoting high-value crops like coconut and sandalwood. About 1 crore farmers and 3 crore people will be benefited through the Coconut Incentive Scheme. This will increase the income of farmers cultivating these crops.
3- What about women?
Many important announcements have been made in the budget to make rural women self-reliant. The government’s focus is on strengthening facilities related to women entrepreneurship, employment and education.
- SHE Marts announced for rural women
The government will launch SHE (Self-Help Entrepreneur) Marts to promote women-led businesses in rural areas. In these She-Marts, women will be able to easily sell their manufactured products, handicrafts, food items and household items. This will give women direct access to the market and increase their income.
- Construction of hostels for women students in 800 districts
In the budget, keeping in mind the education and safety of girl students, hostels will be built in about 800 districts of the country. The aim is to build at least one girls hostel in every district. This will provide convenience to girl students from far-flung areas in their studies.
4- What about health sector?
This time people expected that people above 60 years of age would also be included in the Ayushman Bharat scheme, but this did not happen. That means there is no direct benefit to the general public even in the health sector. Nevertheless, the government has paid special attention to strengthening the health and medical sector. The Finance Minister has made many important announcements related to expansion of health facilities, employment generation and promotion of traditional medicine.
- Private sector participation in 5 medical hubs
The Finance Minister said that 5 medical hubs will be developed in the country. There will be private sector participation in these medical hubs. Modern health facilities will be developed. This will strengthen health infrastructure and encourage investment. AYUSH and diagnostic services, post-care facilities, rehabilitation centers will be developed in medical hubs, so that patients can get better care even after treatment.
- New employment opportunities in health sector
Expansion of medical hubs and new health facilities will create new employment opportunities for doctors, nursing staff, paramedical and technicians. The government has also announced to promote the export of high quality Ayurvedic products. This will give a new identity to the Indian Ayurvedic industry in the global market.
- Announcement of Bio Pharma Scheme
Bio Pharma Scheme has also been announced in Budget 2026. Its objective is to strengthen bio-pharmaceutical manufacturing in the country and make India a global hub. Overall, the budget has focused on aspects like better health facilities, employment generation, promotion of Ayurveda and bio-pharma.
5- What about defense sector?
In this budget presented after Operation Sindoor, the Finance Minister has increased the defense budget from ₹6.81 lakh crore to ₹7.85 lakh crore. That means it has increased by 15.2%. The most important thing about the defense budget is that ₹2.19 lakh crore will be spent this year for arms purchase and modernization as compared to last year’s ₹1.80 lakh crore. This is a straight 22% increase in capital spending. Apart from this, ₹ 64 thousand crore has been kept separately for aircraft and aero engine development, ₹ 25 thousand crore for expansion of naval fleet and ₹ 1.71 lakh crore for defense pension.
6- What about the infrastructure sector?
Emphasis has been laid on railways, waterways and green transport in the budget. 7 new high-speed rail corridors have been announced. Apart from this, in the next 5 years, 20 new ship repair facilities will be developed in National Waterways, Banaras and Patna.
- Mumbai – Pune
- Pune – Hyderabad
- Hyderabad – Chennai
- Hyderabad – Bengaluru
- Chennai – Bengaluru
- Delhi – Varanasi
- Varanasi – Siliguri
7- What about taxpayers-employees?
No income tax relief has been given to employed people in the budget. It was expected that this time the government will increase the standard deduction from Rs 75,000 to Rs 1 lakh. But this did not happen. Apart from this, no change was made in the income tax slab. However, relief has been given in return filing and additional time of 3 months has been given to file the revised income tax return. This means that now taxpayers will be able to file revised returns till 31st March instead of 31st December. Apart from this, the new Income Tax Act will come into effect from April 1, 2026. Tax forms have been re-designed so that common people can fill them easily.