Union Budget 2026: Income Tax Relief, PM Kisan Hike & 8th Pay Commission — Top 5 Expectations

Image: Ministry of Finance (GODL-India / Wikimedia Commons)

New Delhi: With just 10 days left for the Union Budget 2026, expectations are soaring across India. From the middle class hoping for a higher tax exemption limit to farmers awaiting a hike in PM Kisan installments, Finance Minister Nirmala Sitharaman has a tough balancing act ahead on February 1st.

1. Income Tax: Will the Limit Rise to ₹8 Lakh?

The biggest demand from salaried taxpayers is a revision of the Income Tax Slabs under the New Tax Regime. Experts predict the standard deduction could be hiked significantly to offset inflation.

2. PM Kisan Samman Nidhi: Jump to ₹9,000?

Farmers have long demanded an increase in the annual support of ₹6,000, which has remained unchanged since 2019. Reports suggest the government may increase this amount by 50%.

• Current Amount: ₹6,000 per year (3 installments).
• Expected Hike: ₹8,000 to ₹9,000 per year.
• Impact: This would directly benefit over 11 crore farmers ahead of state elections.

3. Railway Budget: Vande Bharat Sleeper Revolution

With the successful trial of the Vande Bharat Sleeper in January 2026, the Railway Budget is expected to announce a massive rollout. The capital expenditure (Capex) for Railways could touch a record ₹2.8 Lakh Crore.

Key Expectations:
• Launch of 500 new Vande Bharat trains over 5 years.
• Focus on “Amrit Bharat” stations redevelopment.
• New safety tech (Kavach 2.0) implementation nationwide.

4. 8th Pay Commission: The Big Question

Central Government employees are eagerly awaiting an official announcement on the constitution of the 8th Pay Commission. While the government has remained tight-lipped, unions are pressuring for a roadmap in this budget, given that the 10-year cycle from the 7th CPC (2016) is nearing completion.

5. Ayushman Bharat: Coverage Doubling?

To reduce out-of-pocket healthcare expenses, the Health Ministry has reportedly proposed doubling the insurance cover under PM-JAY.

• Current Cover: ₹5 Lakh per family.
• Expected Cover: ₹10 Lakh per family.
• New Beneficiaries: Inclusion of the “Missing Middle” class is also debated.