New Delhi, Delhi, India: As the Union Budget approaches, one question consistently dominates public discussion—which prices will rise and which will fall? Budget announcements directly influence the cost of essential goods through changes in taxation, import duties, tariffs, and GST rates.

The Budget Session of Parliament commenced on January 28. Union Finance Minister Nirmala Sitharaman tabled the Economic Survey in Parliament on January 29, outlining the current economic outlook and key indicators. The survey has significantly raised expectations among both consumers and business communities ahead of the Union Budget 2026, scheduled to be presented on February 1.

Economists believe the upcoming budget will play a crucial role amid global economic uncertainties and recent tariff-related decisions taken by US President Donald Trump. With inflationary pressures continuing, the government is expected to announce tax relief measures alongside broader economic reforms to stimulate growth.

Traditionally, the Union Budget triggers close scrutiny over price movements. Adjustments to income tax slabs, import duties, and fuel taxation often result in changes across multiple sectors. This year, market experts anticipate announcements related to income tax, home loans, EMIs, electric vehicles, and fuel prices.

Items Likely to See Price Relief

• Income Tax: Possible expansion of exemptions, allowing salaried taxpayers to retain more disposable income
• Home Loans and EMIs: Scope for reduced interest burdens and borrower-friendly measures
• Electric Vehicles: Expected increase in subsidies to boost adoption
• Mobile Phones and Laptops: Potential reduction in import duties, lowering retail prices
• Items That May Become Costlier
• Petrol and Diesel: Possible upward revision due to taxation changes
• Automobiles: Higher taxes on certain vehicle categories
• Consumer Goods: Marginal increases due to input and logistics costs

Income Tax Relief Expectations

Financial experts suggest that stricter income tax exemptions may be announced, with joint families potentially receiving relief on income up to Rs 25 lakh. At present, income up to Rs 15 lakh remains tax-free under certain slabs. While Budget 2025-26 already provided some relief, major slab changes may be limited this year. However, additional incentives are expected for the business sector as the government aims to accelerate GDP growth and economic momentum.