Taxation in Focus
Budget 2026 has brought the focus back on taxation, with both experts and individuals hoping for changes in the tax regime. The possibilities range from
adjustments to the existing tax structure to the introduction of new schemes. Expectations include potential higher deductions, relief on the 30% tax slab, and modifications to capital gains tax. A key question is whether the government will phase out the old tax regime. Experts are weighing in on how the new tax regime can be made more attractive. This would be a significant point of discussion.
Real Estate Outlook
The real estate sector is looking forward to Budget 2026 with hopes for favorable policies and tax incentives. With a surge in capital inflows, the industry is optimistic. Real estate experts are urging the government to offer tax relief and implement stable policies. These measures are seen as vital to sustain the growth momentum of the sector. The focus is to aid in the confidence of the real estate market. The sentiment has stabilized in Quarter 4 of 2025. It is expected that office occupancy in Delhi-NCR will cross 80% by 2027.
Industry Specific Hopes
Various industries have specific expectations from Budget 2026. The auto industry is seeking incentives for electric vehicles and clarity on the Goods and Services Tax (GST) following the GST 2.0-led recovery. Morgan Stanley has highlighted the need for key reforms in the auto, telecom, railways, and defense sectors. KPMG has emphasized the need for tax clarity and a faster dispute resolution process to improve ease of doing business. These tailored requests show how different sectors aim to benefit from the upcoming financial plan.
Fiscal Discipline Measures
Budget 2026 is expected to focus on fiscal consolidation. ICRA anticipates that the government may aim to cap the fiscal deficit at 4.3% and push for medium-term debt consolidation. These fiscal measures are anticipated to stabilize the Indian economy and set the stage for further growth and investment. The focus on reducing the deficit underscores the government's commitment to responsible financial management. This is important for sustained economic stability.
Impact on Individuals
Individuals are keenly watching Budget 2026 for potential changes that could affect their finances. A key topic of discussion is the possible introduction of joint tax filing for married couples. Such a change could lead to adjustments in tax liabilities and savings. The goal is to provide benefits for married couples. The government also plans to improve provisions to help the middle class. The budget proposals, if enacted, could affect the financial planning for many Indian households.
Economic Growth Forecast
Despite global trade and tariff tensions, India's economic outlook remains positive. The IMF has upgraded India's growth forecast to 7.3% for 2025. This positive outlook reflects the strength of the Indian economy. SBI Research anticipates that India is on track to become an upper-middle-income country by 2030, with a $5-trillion economy in two years. These positive forecasts boost confidence in the Indian economy.
Ombudsman Scheme Launch
In the financial sector, the RBI is set to launch the Integrated Ombudsman Scheme 2026. Grievance redressal will go live from July 1st. This is expected to improve the mechanisms for resolving customer complaints. The scheme will aim to provide a more efficient and accessible avenue for addressing grievances, ultimately promoting greater trust in the financial system.
