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The Union Budget 2025–26 was presented with high expectations from India’s middle class and farming community. At a time when inflation, unemployment concerns, and rural distress continue to dominate everyday conversations, the budget was expected to provide tangible relief. However, a closer examination reveals that the budget largely failed to address the real economic pain faced by these two crucial segments of society.
MIDDLE CLASS: EXPECTATIONS VS REALITY
India’s middle class has been under sustained pressure due to rising living costs, stagnant salary growth, and limited tax relief. One of the key expectations from Budget 2025–26 was rationalisation of income tax slabs and enhancement of deductions to increase disposable income. However, the budget did not introduce any major structural tax relief for salaried individuals.
Under the existing tax regime, individuals earning above ₹12 lakh continue to bear a heavy tax burden. The standard deduction remained unchanged, and there was no significant enhancement in deductions related to housing loans, education expenses, or healthcare costs. With inflation hovering around 5–6%, the absence of meaningful tax relief has further reduced the purchasing power of middle-class households.
Additionally, household expenses such as school fees, medical insurance premiums, fuel, and daily essentials continue to rise. The budget failed to announce any direct subsidies or relief measures aimed at reducing these costs. As a result, the middle class finds itself caught between increasing expenses and limited income growth, with no meaningful support from the budget.
FARMERS: BIG ALLOCATIONS, LIMITED IMPACT
Agriculture remains the backbone of India’s rural economy, employing nearly 45% of the population. In Budget 2025–26, the government allocated approximately ₹1.63 lakh crore to the agriculture sector, marking an increase of around 7% over the previous year. While this appears positive on paper, the real impact on farmers’ incomes remains questionable.
One of the major announcements was the introduction of technology-driven initiatives such as AI-based advisory platforms for farmers. While such initiatives may improve productivity in the long run, they do not provide immediate financial relief to farmers struggling with rising input costs such as fertilizers, diesel, seeds, and electricity.
Crucially, the budget did not announce any major reforms in the Minimum Support Price (MSP) mechanism. Nor were there significant enhancements in direct income support schemes that could cushion farmers against market volatility and crop failures. Fertilizer and fuel subsidies were largely maintained at existing levels, offering little respite amid rising costs.
BROADER ECONOMIC GROWTH VS GROUND REALITY
The government highlighted strong macroeconomic indicators, projecting GDP growth in the range of 6.8–7.2% and increased capital expenditure on infrastructure. While these indicators may appeal to investors and markets, they do not immediately translate into improved living conditions for the middle class or farmers.
Infrastructure spending and fiscal consolidation primarily generate long-term benefits. In the short term, families struggling to manage monthly expenses and farmers battling debt see little direct advantage from such measures. Growth without targeted redistribution risks widening the gap between economic indicators and lived realities.
CONCLUSION: A MISSED OPPORTUNITY
The Union Budget 2025–26 aimed to balance fiscal discipline with growth ambitions. However, in doing so, it overlooked the urgent needs of the middle class and farmers. The absence of meaningful tax relief, limited direct income support, and lack of strong measures to counter rising costs have left these groups disappointed.
For millions of middle-class families and farmers, this budget did not deliver relief, security, or confidence. Instead, it stands as a missed opportunity — reinforcing the perception that Budget 2025–26 was, for them, a flop show.
These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.