Union Budget 2025: ₹2.1 Lakh Crore Disinvestment, Infrastructure Boost, Fiscal Control
The Union Budget, presented this year, outlines ambitious plans for disinvestment, infrastructure building, and economic revival. The government targets ₹2.1 lakh crore in disinvestment, aiming to boost funds for infrastructure projects.
The Budget focuses on accelerating infrastructure development, with plans to enhance highways, railways, airports, and ports. It proposes alternate revenue sources like asset monetisation and the listing of LIC to raise funds. The National Infrastructure Pipeline will be financed through infrastructure finance companies and sovereign wealth funds.
To alleviate stress in the power distribution sector and encourage investment in generation, the Budget proposes measures to improve the financial health of power utilities. Additionally, the removal of dividend distribution tax enhances the rate of return on equity, benefiting investors.
The Budget aims to control the fiscal deficit, reining it in at 3.8% of GDP this year and proposing a reduction to 3.5% next year. It also plans to boost consumption through lower personal income tax rates and increased rural spending. Furthermore, measures to reduce tax harassment, improve contract enforcement, and simplify tax payment processes aim to enhance the business environment.
