Image of highway.
Credit: Special Arrangement
The Union Budget for the upcoming financial year is all set to be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman. According to reports, the Narendra Modi government may consider slashing income tax for individuals earning up to Rs 15 lakhs per annum and extend the tax relief bracket in a bid to provide relief to the middle class and boost consumption.
Ahead of the Budget, Ashish Suman, Partner, JSA Advocates & Solicitors said, "We expect Budget 2025 to increase capex allocation for the roads and highways sector by up to 10%, focus on targeting a big increase in BOT projects and increased private investment since the government is keen on awarding more projects under this model."
He added, "As per reports, the government has identified 15 significant road projects valued at INR 44,000 crore, spanning 937 kilometres, which will be awarded in the future. In the coming fiscal year, a focus on restructuring or repaying the existing debts of NHAI using the budgetary support is expected. With increasing focus on China plus one strategy for diversifying manufacturing and supply chains beyond China, particularly by the United States, more capex allotment to the port infrastructure and measures to boost “Maritime Amrit Kaal Vision 2047”, will enable India to have a world-class shipping infrastructure."
Further, he continued, "Reportedly, Budget for FY 2025-26 will provide for a 10% increase in capex allocation for the railways sector, with focus on railway Safety and infra development for trains and railway stations. Financial allocation towards advancements in the KAVACH safety system, and the integration of artificial intelligence in operations like ticketing are anticipated."
Suman also said "A focus on manufacturing LHB coaches is likely, along with the announcement of new Vande Bharat trains and Vande Metro services. As far as the UDAN Scheme is concerned, key areas include sustaining and expanding operations to enhance regional connectivity. The Budget may also provide for subsidies for regional airport operating under UDAN to adopt sustainable aviation fuel or deploy fuel efficient aircraft."
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.