Sun Feb 02 02:38:17 UTC 2025: ## Modi Government’s Budget 2025 Focuses on Middle Class, Neglects Infrastructure Spending

**New Delhi:** India’s Union Budget 2025, presented today, offers significant tax relief to the middle class while surprisingly maintaining the status quo on infrastructure spending. Finance Minister Nirmala Sitharaman announced an income tax exemption for annual incomes up to ₹12 lakh, altering tax brackets. However, this positive news was tempered by the unchanged capital outlay for railways and roads, remaining at ₹2.52 lakh crore and ₹2.72 lakh crore respectively.

This decision has disappointed industry leaders and experts who anticipated continued substantial investment in critical infrastructure. The unchanged allocation, despite an Economic Survey suggesting a 10% decline in rail network expansion, caused railway stocks like IRCON and IRCTC to plummet after an initial surge following the survey’s release.

While the Economic Survey highlighted an increase in rolling stock production and the introduction of 17 new Vande Bharat trains in FY 24-25 (compared to 41 in FY 23-24), the lack of budgetary support for further expansion in the sector has raised concerns. The survey also noted that Vande Bharat coach production decreased from 456 in FY 23-24 to 228 by October in FY 24-25.

The budget marks a departure from the separate Railway Budget presented until 2017, a practice ended to improve financial transparency and resource allocation. However, the current budget suggests a potential shift in priorities, prioritizing middle-class tax relief over continued infrastructure development. The long-term implications of this budgetary decision on India’s economic growth remain to be seen.

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