Fiscal Measures:
Fiscal Deficit Target: The government aims to reduce the fiscal deficit to 4.4% of GDP, down from 4.8% in the previous year.
Borrowing Plans: Gross borrowings are projected at ₹14.82 trillion, with net borrowings at ₹11.54 trillion.
Tax Reforms:
Personal Income Tax: The nil tax slab has been increased to ₹1.2 million to enhance middle-class spending power.
Customs Duties: Reductions have been announced for marine products and critical minerals, while life-saving drugs are now exempt from customs duties.
Sectoral Allocations:
Agriculture: The government plans to increase agricultural spending by over 15%, allocating approximately ₹1.75 lakh crore to boost rural incomes and curb inflation.
Infrastructure: Capital expenditure is set to rise to ₹11-11.5 lakh crore, up from ₹10 lakh crore in the previous fiscal year, to encourage private investments and infrastructure development.
Defense: The Ministry of Defence has been allocated ₹6.22 lakh crore, focusing on modernization and self-reliance.
Investment and Reforms:
Foreign Direct Investment (FDI): The FDI limit in the insurance sector has been raised to 100% to deepen market penetration.
Production Linked Incentive (PLI) Scheme: A new PLI scheme with an outlay of ₹25,000 crore has been approved for electronic components, aiming to attract investments worth ₹40,000-₹45,000 crore.
Environmental Initiatives:
Green Steel Production: The steel ministry has requested ₹150 billion to incentivize low-carbon steel production, aligning with India's net-zero emissions goal by 2070.
These measures reflect the government's commitment to fiscal prudence, economic growth, and sustainable development.
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