Voices from middle class ahead of Budget 2026:How tax-paying middle-income families feel ignored as welfare for poor takes priority

As Finance Minister Nirmala Sitharaman gears up to present the Union Budget for the ninth consecutive time on Sunday, February 1, 2026, Delhi-based LIC insurance agent Rakesh Ranjan laments that the government announces schemes only for the poor and has ignored middle-income households like his. He is not alone in feeling this way. Thirty-two-year-old Manoj Kumar, who works at Abhishek Gas Agency in Bhopal, has another concern. Kumar feels the government should extend the maximum time limit for a vehicle’s roadworthiness. The policy that mandates scrapping 15–20-year-old vehicles should be withdrawn. The middle class can’t afford new cars. Many people use the same car for 25 years. Kumar says. Many middle-class households like Ranjan and Kumar, who are struggling to earn a decent income amid rising inflation, expect the finance minister to announce major relief measures on Budget day. Calls grow for schemes beyond poverty-focused welfare They complain that the middle class pays taxes regularly yet receives little support. Most government schemes are targeted at the poor, who do not pay income tax, while the middle class—which contributes the bulk of tax revenue—is largely ignored. As a result, they hope the minister will announce more schemes for them in the upcoming Budget. Voicing his frustration, Ranjan says, Government schemes such as the public distribution system and health programmes like Ayushman Bharat are meant for the poor. The middle class pays taxes but gets hardly any benefits. Many people from different walks of life, it appears, remain dissatisfied with government support aimed at easing financial stress, despite the existence of over 4,600 central schemes covering financial inclusion, social security, infrastructure development, and other areas. Some of these welfare schemes include Ayushman Bharat (PM-JAY health insurance), PM Jan Dhan Yojana (banking), PM Awas Yojana (housing), PM-Kisan (farmers’ income support), Mudra Yojana (loans), and the Jal Jeevan Mission (water supply). Most of these programmes focus on poverty alleviation. From fuel prices to train concessions, citizens spell out Budget expectations Some of the people whom Bhaskar English has approached for comments on their Budget expectations also outlined their own wish lists for the finance minister. The expectations include a reduction in petrol and diesel prices, the resumption of concessions on train tickets, the removal of the crypto tax, and lower vegetable prices, education fees, and medical expenses. Senior citizens who were approached said they want the government to roll back the decision to withdraw concessions for the elderly on train tickets. The government withdrew this perk during the COVID-19 pandemic in March 2020 and has not reinstated it. Previous concessions on train tickets · 40% of the fare for men (60+ years) · 50% of the fare for women (58+ years) Current Policy: Senior citizens are charged the same fare as general passengers. Lower Berth Quota: Although there is no discount on the fare, the lower berth is still reserved for male passengers aged 60 and above and female passengers who are 45 years and above (subject to availability). General Subsidy: Railways currently offer a 45%-55% discount on fares for all passengers, but there is no specific concession for senior citizens. Although there have been demands to bring back the concession for Sleeper and 3AC classes, no official announcement has been made regarding its restoration. How much tax the government levy on cryptocurrencies? The government imposes a flat 30% tax on all income derived from the transfer of virtual digital assets (VDAs) or cryptocurrency, excluding the acquisition cost. Also, a 1% tax deducted at source (TDS) is levied on the sale of crypto assets exceeding ₹50,000 in a financial year. Key tax details: · 30% Tax Rule: Applied to profits from trading, selling, or exchanging crypto, irrespective of the holding period or income slab, plus a 4% cess. · No Loss Offsetting: Losses from crypto transactions cannot be set off against other income or carried forward. · 1% TDS: Deducted by exchanges on transactions exceeding ₹50,000 (or ₹10,000 in some cases) to track trading activity. · GST: An 18% GST applies to services such as trading fees, commissions, and wallet charges. Indian Vehicle Scrappage Policy The Indian Vehicle Scrappage Policy mandates that commercial vehicles older than 15 years and private vehicles older than 20 years must pass mandatory fitness tests at Automated Testing Stations (ATS). Unfit or unregistered vehicles, often called End-of-Life Vehicles (ELV), must be scrapped at Registered Vehicle Scrapping Facilities (RVSF), with owners receiving incentives like tax rebates and new car discounts. Reduction of food prices: Although inflation in the country has not risen sharply in recent months and recent GST cuts have marginally lowered the prices of some goods and commodities, many people remain frustrated by the high cost of goods and services and want prices to come down from current levels. Final word As Budget 2026 approaches, the middle class is looking for real relief. With rising living costs squeezing household budgets, expectations are centered on lower fuel prices, the return of train ticket concessions, and policy changes that ease everyday financial pressure. Whether the upcoming Budget addresses these concerns will shape how far it resonates with India’s tax-paying middle-income households.