With Budget 2026 just around the corner, one thing is pretty clear- Consumer side expectations are clustering around tax relief, lower everyday costs and improved access to housing and healthcare.
Meanwhile, the Economic Survey, which was tabled yesterday, revealed how India performed in the past year, including an alarming rate of 2.35 crore gig workers to be inducted by 2030, tier 2 cities being the most liveable, and a rising Experience Economy or Orange Economy reflecting the rise of disposable income.
Here are the top five consumer expectations for Budget 2026-27:
Income tax relief to support consumption
Personal income tax relief remains the most direct consumer ask. Goldman Sachs said earlier tax slab readjustments provided relief worth 0.3% of GDP, helping support a recovery in urban consumption. As per Deloitte’s budget expectations, the reduction or the relief in income tax is expected to increase discretionary spending across households.
At the same time, as per the EY’s budget expectations report, personal income tax revenue growth moderated to 6.9% in the first seven months of FY26, following these rationalisation measures.
GST rate rationalisation under GST 2.0
Another major expectation that consumers have for Budget 2026-27 is a simplified GST structure and further rate rationalisation. According to Deloitte, the GST 2.0 framework implemented in September 2025 shifted toward a three-slab structure, namely 5%, 18% and 40%, with tax cuts focused on goods with high youth participation.
According to the budget expectation report by Goldman Sachs, earlier GST cuts on mass-consumption products were equivalent to 0.2% of GDP and could add 0.2% points to demand growth in FY27. Furthermore, as per CII, GST rationalisation is a key channel for improving household purchasing power.
Cheaper tomatoes, onions and potatoes
Containing price swings in tomatoes, onions and potatoes (TOP) is another major expectation tied to household budgets.
As per EY, while headline CPI inflation was 0.7% in November 2025, it remains highly sensitive to vegetable price shocks.
According to CII’s budget expectations, setting up a decentralised strategic buffer stock mechanism to procure these perishables during peak harvests and release them during lean periods, with the aim of smoothing prices and reducing consumer stress.
Wider definition of affordable housing
Another expectation for consumers is affordable housing. The CII budget expectations stated that expanding the definition of affordable homes by raising the interest subvention eligibility cap to Rs 35 lakh from Rs 25 lakh currently. It has also called for multiple price and size brackets to reflect differences across cities.
According to Deloitte’s budget expectations, housing support can lead to a broader push for urban clusters and more self-sufficiency, sustaining growth nodes, inclusive of better infrastructure and liveability.
Lower out-of-pocket healthcare costs
The final ask from the consumers is affordability in healthcare. As per CII, out-of-pocket spending accounts for about 39.4% of total health expenditure, and proposed including OPD consultations and diagnostics in insurance coverage through affordable riders, which it estimates could reduce treatment costs by around 20%.
Deloitte said industry expectations are aligned with the “Insurance for All by 2047” vision, including calls for zero-rating or exempting GST on insurance agent commissions and enhancing Section 80D deductions. CII has also supported mandatory employer-provided group health insurance for organised sector workers.