Deloitte India's Executive Director, Tarun Garg, anticipates that the upcoming Union Budget 2026-27 will concentrate on targeted tax relief measures rather than introducing broad, sweeping changes to the tax regime. The Budget, slated for presentation on February 1, 2026, is expected to focus on "fine-tuning" the existing new tax regime. Garg highlighted that senior citizens could be among the primary beneficiaries, potentially receiving higher deductions on interest income from bank deposits and small savings schemes, as well as healthcare-related relief, addressing their increasing medical expenditures. Furthermore, Garg suggested that the government might consider tweaks to the standard deduction, particularly under the new tax regime, to offer some relief to salaried taxpayers without altering the core tax slab rates. While there is a growing demand to increase the current limits for interest income deductions, especially for non-senior citizens, major alterations to the slab rates under the new tax regime are deemed unlikely, primarily due to existing fiscal constraints, as noted by Garg. Other expectations from Deloitte India, and corroborated by various industry bodies and economic analyses, include a strategic focus on supporting Micro, Small, and Medium Enterprises (MSMEs), strengthening infrastructure development, and diversifying export markets to enhance India's trade resilience amidst global uncertainties. There is also a call for rationalizing customs duties to boost domestic manufacturing and exports, and for increased budgetary allocations for research and development, particularly in critical sectors like renewable energy and the processing of critical minerals. Economists from Deloitte also project India's robust growth momentum to continue, with FY26 growth estimated between 7.6% and 7.8%, driven by strong Goods and Services Tax (GST) collections and sustained domestic demand. The overall sentiment suggests a pragmatic approach to the Budget, balancing fiscal discipline with targeted interventions aimed at fostering economic growth and enhancing citizen welfare.