Business

Union Budget 2025: A Shift in Privatization Strategy with No New Targets Announced

Union Budget 2025 Overview

The Centre has projected a revenue of Rs 47,000 crore from disinvestment and asset monetization for the fiscal year 2025-26. In a notable shift, the government has refrained from setting specific disinvestment targets for Public Sector Undertakings (PSUs), reflecting a moderated appetite for privatization. This figure is categorized under miscellaneous capital receipts in the Budget documents.

Union Budget 2025: Selloff appetite abates, no new targets set

Asset Monetization Plan

Finance Minister Nirmala Sitharaman unveiled plans for the second phase of asset monetization, aiming to reinvest Rs 10 lakh crore into new projects over the next five years. This initiative is part of a broader strategy to enhance infrastructure development through the monetization of existing assets.

Budget 2025 Highlights

The Budget also introduced significant changes to the income tax regime, with the introduction of new tax slabs for the fiscal year 2025-26. Notably, individuals earning up to Rs 12 lakh annually will be exempt from income tax, a move aimed at benefiting the salaried middle class.

Furthermore, the government has announced regulatory and fiscal adjustments to support the asset monetization plan, ensuring a conducive environment for investment and growth in new projects.