The Union’s cabinet approved the massive £51 407 Crore expenses on Friday, which deals with key areas from infrastructure and energy subsidies for a new version of its direct tax law. The new 2025 income Act, which includes feedback from the Parliamentary Committee, will be introduced on Monday at Lok Sabha.
The package of expenditure includes a significant payout for state retailers of fuel for past losses and funds on the new highway, a regional development plan in the northeast and a technical education system.
A substantial part of the budget – £30,000 Crore-by-one was earmarked to compensate for three marketing companies in the public sector in the country: Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. These companies absorbed the losses of the sale of gas (LPG) at government prices, while global prices remained high. The payment will be made in 12 installments, which will ensure that companies will continue to provide LPG and maintain their capital expenses.
Cooking
Cabinet also approved a targeted subsidy £12 000 crore for free connection of gas to cooking under the UJJWala scheme for FY26. This program provides a subsidy £300 for each cylinder 14.2 kg LPG, up to nine fillings per year.
As part of the UJJWALA 2.0 initiative, all recipients will receive without deposits, which includes a cylinder, pressure controller, Surraksha hose, home consumer card for home gas and installation fees. The first replenishment and stove is also provided free of charge, with all costs transmitted by the government or retailers with fuel.
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India imports approximately 60% of their LPG requirements. Shield PMUY Before the impact of sharp fluctuations in international prices and support the lasting use of LPG, the government first introduced a targeted subsidy £200 for 14.2 kg of war in May 2022. This subsidy was subsequently raised to £300 in October 2023. Strategic intervention was successful, with the average consumers’ consumption of PMUY per capita improved from approximately 3 cartridges in 2019-20 to 4.47 during FY24-25, demonstrating the positive impact of the scheme on the national level.
Income tax design, 2025
The Cabinet also approved the revised Income Tax Act, 2025, which is trying to simplify the six -year direct tax laws of India, two people who are familiar with the development.
The revised bill will be submitted on Monday at Lok Sabha, people said. It includes most of the recommendations of the Parliament selection committee, chaired by a party deputy Bharatiya Janata Baijayant Panda, who reviewed the draft proposed law, said they speak of the state of anonymity.
After approval, the Act on Income Tax from 1961 will be replaced.
The previous version of the bill presented in Lok Sabha at the Parliament’s budget meeting on 13 February was formally withdrawn, the government said in its statement. Almost all proposals for the selection committee were accepted. “Proposals from other sources that are obliged to convey legislative importance have also been received.”
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At the right time, a new account will be introduced at Lok Sabha, the statement said.
One of the previously cited people said: “To avoid confusion with several versions of the law and provide a clear and updated version with all integrated changes, a new version of income tax will be introduced on Monday.”
Mint announced on Thursday that the cabinet was set to consider the revised law on Friday.
Questions E -mail E -mail to the Ministry of Finance and the Secretariat of the Cabinet on Friday remained unanswered at the time of publishing.
A special package for northeast
Cabinet approved a new package of special development (SDP) with total expenditure £7 250 crore for Assam and Tripura. The main objective is to promote peace, promote inclusive development and rehabilitate affected communities.
Funds will be used for a number of projects, including improvement of infrastructure, job creation and providing better health services, education and skills development.
The central government will contribute from the total amount £4 250 crore while the Government Assam provides balance £3,000 crore. This initiative is expected to bring stability, integrate the affected community into the national mainstream and will be a great pressure on tourism in the region and place it as a long -term investment in social harmony and economic progress.
Improvement of road infrastructure
Cabinet also improved the main infrastructure project with capital costs £2 157 Crore for the construction of a new four-lane highway section from Marakkanam to Puduchherry on the National Highway-332A. This project deals with significant overload on the existing two -lane highway and associated state motorways, which are decisive for connectivity between Chennai, Puduchherry, Viluppuram and Nagapattinam.
The project upgrades approximately 46 km NH-332A to a modern four-lane configuration. This upgrade not only postpones the existing corridor and improves safety, but also satisfies the needs of mobility of fast -growing cities in the region.
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The new alignment integrates smoothly with other main national and state motorways, as well as with key multimodal transport nodes, including two railway stations, two airports and a smaller port. This will make it easier to move the goods and passengers, which will strengthen regional economic growth and tourism. The project is expected to generate an important job, with approximately 8 Lakh Days of Direct and 10 Lakh Days of Indirect Employment and opening new ways for growth and prosperity in the surrounding areas.
Strengthening Technical Education with ‘Merite’
The government also cleaned a new system called “Merite” (modernization of education and research in technical institutions) with a budget £4,200 crore.
The aim of the five -year program, partially financed by the World Bank, is to improve the quality of technical education in 275 engineering and polytechnic institutions throughout India.
The initiative will focus on modernizing courses, encouragement of research and increasing the employability of students through internships and skills development. The match with the national education policy-2020 is designed to benefit from more than 7.5 student students and is expected to significantly increase the rates of location and reduce unemployment among engineering graduates.
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