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The Indian government is expected to receive a significant dividend transfer from the Reserve Bank of India (RBI) in 2025-26, amounting to 2.56 lakh crore, owing to factors such as rupee depreciation and increased interest income. The RBI contributes the majority of this amount, with state-run lenders making up the rest.
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Finance Minister Nirmala Sitharaman's budget speech introduced significant changes in income tax slabs to boost consumption demand. The strategy aims to foster economic growth without compromising fiscal discipline. The focus is on job-intensive growth through MSMEs, although concerns about primary education and disinvestment remain.
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The Indian government increases the Union Housing and Urban Affairs Ministry's budget allocation by 18% to Rs 96,777 crore for FY 2025-26. Key initiatives include an Urban Challenge Fund of Rs 1 lakh crore, enhanced loans under the PM SVANidhi scheme, and substantial provisions for Pradhan Mantri Awas Yojana and Urban Rejuvenation Mission.
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