Subsidy rationalization keeps consumer support while restructuring fuel excise to fund infrastructure and boost energy investment.
The Budget maintains subsidised LPG and kerosene while advancing Subsidy Rationalization via targeted transfers and voluntary surrender; it preserves total excise incidence on petrol and diesel but restructures levies to increase the additional excise component to fund infrastructure. Strategic underground crude storage caverns will be established and funded; central public sector oil and gas companies receive plan capital expenditure from internal and extra budgetary resources for sector projects. A phased corporate tax reduction and a National Investment and Infrastructure Fund with revitalised PPPs are promoted to attract investment.