Wed Jan 29 04:02:57 UTC 2025: **India Awaits Budget 2025: Relief for CNG Users and NPS Investors Expected**

NEW DELHI – India holds its breath as Finance Minister Nirmala Sitharaman prepares to present the Union Budget on February 1st. High expectations surround this year’s budget, with widespread anticipation for relief measures across various sectors.

Key expectations include a potential reduction in excise duty on CNG, aiming to lower prices for consumers. The budget may also see an increase in tax benefits for National Pension System (NPS) investors. Further anticipated announcements include adjustments to income tax slabs, increased credit limits for Kisan Credit Cards, and measures to boost the tourism and hospitality sectors.

The oil and gas sector is also expected to receive attention, with a potential cut in the 14.4% excise duty on CNG. Industry experts believe this reduction could counteract the impact of the reintroduction of the administered pricing mechanism (APM). The government may also allocate ₹35,000 crore to subsidize LPG gas to offset under-recovery faced by public sector oil marketing companies (OMCs).

Significant investment is anticipated in defense, PSUs, and infrastructure. The budget is expected to prioritize rural infrastructure development and may focus on increased expenditure rather than capital expenditure in defense. Furthermore, the government may announce measures to strengthen the Indian Rupee, addressing concerns about its recent decline. Economists and fund managers anticipate measures complementing the Reserve Bank of India’s efforts to boost liquidity in the banking system.

A significant change may also be coming to NPS rules. The Finance Minister might eliminate or modify the existing regulation requiring 40% of the accumulated NPS fund to be invested in annuities upon retirement at age 60.

The budget’s impact on various sectors will be closely watched across the country.

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