Prime Minister Narendra Modi’s government is gearing up for a transformative Union Budget 2026 presentation tomorrow, February 1, by Finance Minister Nirmala Sitharaman, focusing on unleashing middle-class spending power, fueling investments, and driving India’s journey to Viksit Bharat.
Massive Income Tax Overhaul for Salaried Class
No income tax on average monthly earnings up to ₹1 lakh under the new regime, with salaried individuals paying zero tax up to ₹12.75 lakh annually after standard deduction benefits— a direct ₹1 lakh crore revenue sacrifice to supercharge household savings and consumption.
TDS thresholds rise sharply: senior citizens’ interest income limit doubles to ₹1 lakh, rent TDS jumps to ₹6 lakh from ₹2.4 lakh, and TCS threshold hits ₹10 lakh, slashing compliance burdens while decriminalizing delays.
Dividend tax cuts to 10% or full elimination end double taxation pain, alongside STT and capital gains tweaks, making markets more investor-friendly as championed by PM Modi’s economic reforms.
Agriculture and Rural Powerhouse Boost
“Mission Aatmanirbharta in Pulses” targets tur, urad, masoor self-sufficiency, complemented by high-yield seeds missions, vegetable-fruit programs, and cotton productivity drives.
Kisan Credit Card loans expand to ₹5 lakh with interest subvention, Jal Jeevan Mission extends to 2028 emphasizing rural water quality, and 50-year interest-free state loans get ₹1.5 lakh crore for capex.
MSME and Manufacturing Revolution
Customized ₹5 lakh credit cards for 10 lakh Udyam-registered micro enterprises in year one, plus enhanced PM SVANidhi loans and UPI-linked cards up to ₹30,000 for street vendors.
Startup guarantees rise to ₹20 crore (1% fee in 27 Atmanirbhar sectors), exporter MSMEs get up to ₹20 crore term loans, and a National Manufacturing Mission scales Make in India across small-to-large industries.
Second Asset Monetization Plan unlocks ₹10 lakh crore for fresh projects, positioning India as a global toys and warship hub.
Fiscal Discipline Meets Ambitious Growth
FY25 fiscal deficit closes at 4.8%, targeting 4.4% in FY26, balancing robust public capex with private investment revival.
Gig workers gain e-Shram registration, identity cards, and PM Jan Arogya healthcare; women/SC/ST entrepreneurs access ₹2 crore term loans over five years.
AI Centre of Excellence (₹500 crore) expands digital textbooks in Indian languages, skill development, and healthcare infrastructure.
Six Pillars of Modi Government’s Transformative Reforms
Taxation simplifies for ease of business; power sector secures energy; urban development builds smart cities; mining boosts resources; financial reforms invigorate credit; regulatory changes cut red tape—all engines for 7-7.5% GDP growth.
This budget embodies PM Modi’s vision: Garib, Youth, Annadata, Nari empowerment through inclusive, innovation-led policies sustaining India’s global rise.
