Listen To This Post
New Delhi/ Chandigarh: The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, may not have altered income tax slabs. Still, it includes several measures that directly affect the everyday lives of ordinary citizens—lower healthcare costs, easier tax compliance, targeted support for farmers and students, and steps to stabilise financial markets.
In her 80-minute Budget speech, Sitharaman outlined three core “kartavyas” of the government: accelerating economic growth, fulfilling people’s aspirations. While macroeconomic stability remained the underlying theme, the Budget’s real impact lies in how these announcements translate into savings, access and opportunities for ordinary households.
Healthcare relief: Cheaper medicines, lower treatment burden
One of the most tangible gains for the commoner comes in healthcare. The government has removed fundamental customs duty on 17 cancer medicines, a move expected to significantly reduce the cost of long-term cancer treatment, which can run into several lakhs of rupees annually for families. Additionally, import duty exemptions have been extended to drugs, medicines and specialised medical food used in the treatment of seven more rare diseases.
For patients dependent on imported therapies, especially those battling cancer and rare genetic disorders, this translates into direct out-of-pocket savings. The Budget also expands duty-free personal imports of medicines for special medical purposes, easing access for families that otherwise struggle with high import costs.
Taxpayers: Ease of compliance over rate cuts
While individual taxpayers did not get a reduction in income tax rates, the Budget focuses on simplifying compliance and reducing litigation. The deadline for filing revised income tax returns has been extended to March 31 from December 31, giving salaried individuals and small taxpayers more time to correct errors without penalties.
A significant reform allows taxpayers to update their returns even after reassessment proceedings have begun by paying an additional 10% tax on top of the applicable rate. This measure aims to reduce prolonged disputes and legal costs—often a significant source of stress for middle-class taxpayers dealing with notices and audits.
Farmers: Crop-specific support and export focus
For farmers, especially in southern states, the Budget introduces a Coconut Promotion Scheme to raise productivity and strengthen India’s global competitiveness in coconut cultivation. A dedicated programme for cashew and cocoa aims to make India self-reliant in raw cashew and coconut production while boosting exports.
Though region-specific, these schemes promise higher farm incomes, better processing infrastructure and export-linked growth—benefits that eventually ripple into rural employment and allied sectors such as logistics and food processing.
Students and families: Lower education-related outgo
The Budget offers relief to students and parents planning to study overseas. The Tax Collection at Source (TCS) rate under the Liberalised Remittance Scheme for education has been reduced to 2%, easing the upfront financial burden on families sending money abroad for studies. The same reduced rate applies to overseas tour packages, benefiting middle-income households.
On the infrastructure front, the government plans a new National Institute of Design in eastern India, five university townships near major industrial and logistics corridors, and a girls’ hostel in every district. These measures aim to improve access to quality education while cutting migration and accommodation costs for students.
Financial markets: Protecting small investors
To curb excessive speculation in derivatives trading, the Budget raises the Securities Transaction Tax (STT) on futures to 0.05% from 0.02%, and on options to 0.15% from lower existing rates. While this impacts high-frequency traders the most, it is intended to stabilise markets and protect small investors from volatile swings driven by speculative activity.
Banking and credit: Focus on efficiency
A high-level committee will review the banking sector, while public sector NBFCs such as PFC and REC will be restructured to improve efficiency. For the typical borrower—whether a home buyer, small business owner, or farmer—these reforms are expected to gradually translate into smoother credit flow and better service delivery.
What it means for the commoner
Budget 2026 may not offer headline-grabbing tax cuts, but it delivers targeted relief where household expenses hurt the most—healthcare, education and compliance costs. By focusing on affordability, access and administrative ease, the government has attempted to balance fiscal discipline with everyday economic realities. For the ordinary citizen, the gains may be incremental rather than dramatic—but in reduced medical bills, fewer tax hassles and better education infrastructure, the Budget offers practical relief that touches daily life.
