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www.projectstoday.com February 2025Union Budget 20259Infrastructure-related Central ministries has been asked to come up with a 3-year pipeline of projects that can be implemented in PPP mode. State governments will be encouraged to do so and can seek support from the IIPDF (India Infrastructure Project Development Fund) scheme to prepare PPP proposals. Further, an outlay of Rs 1.5 lakh crore is proposed for the 50-year interest free loans to states for capital expenditure and incentives for reforms. The budget continues to emphasise fiscal discipline, maintaining a delicate balance between stimulating economic growth and managing public debt. The fiscal deficit for FY25 is targeted at 4.8% of GDP, with a further reduction to 4.4% in FY26. These targets demonstrate the government%u2019s commitment to fiscal consolidation, ensuring that public finances remain sustainable while accommodating necessary capital expenditures. To achieve this, the government plans to enhance revenue mobilisation through improved tax compliance mechanisms and asset monetisation programs. This disciplined approach to fiscal management is expected to build the confidence of both Indian and foreign companies.The financial sector has also seen significant reforms, with the government allowing 100% Foreign Direct Investment (FDI) in the insurance sector, provided that premium collections remain invested in India. This measure is expected to attract foreign capital inflows and improve insurance penetration in the country. Additionally, the government has announced the establishment of a Maritime Development Fund with a Rs 25,000 crore corpus, aimed at bolstering shipbuilding and logistics, further strengthening India%u2019s global trade competitiveness.Education and skill development remain a top priority, with the government increasing the number of seats in IITs and medical colleges. Furthermore, the removal of tax deductions on foreign educational loans aims to streamline the financing process for students pursuing higher education abroad. To bridge the skill gap, 50,000 Atal Tinkering Labs will be established in government schools, fostering innovation and scientific temper among students. Additionally, National Centres of Excellence for Skilling will be developed in collaboration with global institutions to equip India%u2019s youth with skills aligned with emerging industry requirements.Recognizing the challenges posed by outdated regulations, a High-Level Committee for Regulatory Reforms will be constituted to review and rationalize non-financial sector regulations, aiming to eliminate bureaucratic bottlenecks and foster an investment-friendly business environment. This is a critical step toward improving ease of doing business and ensuring that India remains an attractive destination for global investors.The UDAN initiative, aimed at enhancing regional air connectivity, will be expanded to include 120 new destinations, increasing accessibility to smaller towns and cities. Furthermore, the BharatTradeNet platform will be introduced to streamline international trade operations, ensuring efficient logistics and trade documentation, and reinforcing India%u2019s role in global supply chains.The Union Budget 2025 demonstrates a balanced approach to economic management, blending ambitious growth-oriented measures with fiscal prudence. By prioritising tax relief for the middle class, real estate sector incentives, financial and startup sector liberalisation, and strong infrastructure investments, the government has laid the foundation for sustained long-term economic growth. As India advances towards its goal of becoming a USD 5 trillion economy, these strategic interventions will play a pivotal role in shaping its trajectory toward global economic leadership.Top 10 Ministries (Capital Expenditure) 2025-2026Ministry/DepartmentsMinistry of Road Transport and HighwaysMinistry of RailwaysMinistry of FinanceMinistry of DefenceMinistry of CommunicationsMinistry of Housing and Urban AffairsMinistry of Home AffairsMinistry of Science and TechnologyDepartment of Atomic EnergyMinistry of Petroleum and Natural GasTotal Capital ExpenditureRs Crore2,72,241.152,52,000.002,21,534.421,92,387.6252,743.1037,623.3822,411.4120,097.4611,977.646,626.1311,21,089.77Source: Union Budget-2025