Union Budget 2026: Low-income families contend with low earnings and high spending

Union Budget 2026 leaves low-income families like A. Nagaraj's grappling with rising costs and stagnant earnings, seeking relief.

A. Nagaraj, private college housekeeping staff

Annual income: ₹1.8 lakh

Family members: three

The word ‘moderate inflation’ in the Budget speech on Sunday failed to elicit a response from Chennai resident A. Nagaraj, 52, who is struggling to make ends meet. He has overcome all odds, and successfully educated his son, who has completed his Masters in Economics in pursuit of a career in government services. “Earnings are low, while spending remains high. I depend on loans,” he said. He said that in 2026, he had been paying a rent of ₹12,000 for a one-bedroom house, which he rented for ₹4,500 four years ago. As the State government schemes with the Centre’s funding for affordable housing has not been beneficial for families with earnings similar to Mr. Nagaraj’s, He said his wife’s monthly wages of ₹7000 were used to meet monthly expenses. Essential commodities and medicine for his mother led to an increase in expenditure last year. As the Finance Minister proposed to exempt basic customs duty for 17 drugs or medicines for cancer patients, Mr. Nagaraj said he could not afford medical treatment for his 72-year-old mother who had a fractured leg. “My mother passed away recently,” Mr. Nagaraj added. My wife has to spend money on medicine for blood pressure and diabetes. Is there a proposal to provide relief for low-income people who spend money on such medicines?” he asks. “Even tea, which is a staple in our home, is expensive these days. My son spends ₹150 per day on petrol. I pay a bus fare of ₹42 per day. The commodities we get from the ration shop have to be improved with better support from both the Central and State governments. The interest rate for personal loans is high for people like me. I pay an EMI of ₹3,000. This affects us. Will the Budget ever address some of our concerns,” he wondered. While the Budget does not offer direct monetary benefits to low-income families, it aims to reduce essential costs, improve employment opportunities, and support income stability.