Union Budget 2025: Live Coverage

Govt set to incentivise electricity distribution reforms

The government has stated that it will incentivise electricity distribution reforms and the augmentation of intra-state transmission capacity by States. The FM said that this step will help improve the financial health and capacity of electricity companies.

Additional borrowing of 0.5% of the GSDP will be allowed to States contingent on these reforms, the FM stated. 

Urban Challenge Fund of Rs 1L Cr announced to drive cities as growth hubs

The Government will set up an Urban Challenge Fund of Rs 1 lakh crore to implement proposals for cities as growth hubs, creative redevelopment of cities, and for water and sanitation purposes as announced in the July Budget

The fund is set to finance up to 25% of the cost of bankable projects with a stipulation that at least 50 per cent of the cost is funded from bonds, bank loans, and PPPs. An allocation of Rs 10 thousand crores has been proposed by the government in the FY 2025-26

Urban sector reforms related to governance, municipal services to be incentivised

Building on the July Budget proposals, the FM has announced that urban sector reforms related to governance, municipal services, urban land and planning will be incentivised

Jal Jeevan Mission extended until 2028 to reach 100% mark of potable tap water connections

Jal Jeevan Mission has provided access to potable tap water connections to 80 per cent of India's rural population (15 crore households) since 2019. 

To achieve 100 per cent mark of tap water connections, the FM has announced the extension of the Jal Jeevan Mission until 2028 with an enhanced total outlay.

The Mission will be focused on the quality of infrastructure and rural piped water supply. Separate MoUs will be signed with the States and the UTs to ensure sustainability and citizen-centric water services delivery

Asset Monestisation Plan 2 announced for 2025-2030

The FM has announced the second Asset Monetisation Plan for 2025-2030, which will be launched to plow back Rs 10 lakh crore in new projects. Regulatory and fiscal measures will be fine-tuned to support the Plan, the FM announced 

Support to States for infrastructure announced

An outlay of Rs 1.5 lakh crore is proposed for the 50-year interest free loan to states for capital expenditure and incentives for reforms has been announced by the government

Infra-related Ministries to come up with projects that can be implemented in PPP mode

Each infrastructure-related Ministry will come up with a 3-year pipeline of projects that can be implemented in the PPP mode, the FM announced. The States will also be encouraged to do so and can seek support from the India Infrastructure Project Development Fund which is set to cover PPP proposals

Social security scheme for welfare of online platform workers

The government will arrange for the identity cards of gig workers of online platforms, as well as their registration on e-Shram portal. They will be provided health care under PM-Jan Arogya Yojana.

The measure is likely to assist 1 crore gig workers 

PM SVANIDHI revamped with enhanced loans from banks

The PM SVANIDHI scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with a limit of Rs 30 thousand, capacity building support. 

The FM stated that the PM SVANIDHI scheme has benefited more than 68 lakh street vendors, and has given them respite from high interest informal sector loans.

Strengthening urban livelihood

The government has been giving priority to assisting urban poor and vulnerable groups, the FM stated. She added that a scheme for socio-economic upliftment of urban workers will be implemented to help them improve their incomes, have sustainable livelihoods, and a better quality of life.