Budget 2025: A nominal amount has been allocated in the budget to strengthen the infrastructure, railway-infra stocks fell
India Budget 2025: For the financial year 2025-26, the government has allocated a capital expenditure of Rs 11.2 lakh crore.
Budget 2025: To strengthen the country's infrastructure, the government has allocated a capital expenditure of Rs 11.2 lakh crore for the financial year 2025-26. In the last financial year 2024-25, the government had allocated Rs 11.11 lakh crore. That is, only 9.8 percent has been increased in the budget for strengthening the infrastructure as compared to last year.
Minor budget allocation for capital expenditure
The market has been disappointed by the marginal increase in capital expenditure. Due to this, a big decline has been seen in the stocks related to railways and infrastructure. In fact, in the last financial year, Rs 11.1 lakh crore was allocated under the capital expenditure head. But after march 2024, the code of conduct was imposed in the country due to the lok sabha elections. In such a situation, the pace of expenditure on capital expenditure slowed down, due to which the government has failed to spend the amount allocated in the budget completely. In this time's budget, the focus of the government was on increasing consumption and demand. Keeping this in mind, under the New Income Tax Regime, those with an annual income of Rs 12 lakh will no longer have to pay tax. Major changes have also been made in the tax slab in the new tax regime. It is believed that the tax burden on the middle class will be reduced, which will give them more money to spend. This will help in increasing domestic consumption - savings and investment, which will benefit the economy.
Big fall in infra-railway stocks
Due to low budget allocation of capital expenditure for the coming financial year, there has been a sharp decline in infra railway stocks. L&T closed down by 3.02%, ABB by 6.24%, Cummins india by 4%, Siemens by 5.57%. Among railway stocks, IRFC closed down by 6.26%, IRCON by 9.52%, rail Vikas Nigam by 9.43%, Texmaco by 8.95%, Railtel Corp by 7%.
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