New I-T bill, ₹30,000 crore for OMCs get Cabinet nod

The Union cabinet approved a massive ₹51,407 crore spending plan on Friday, addressing key areas from infrastructure and energy subsidies to a new version of its direct tax law.

- Priyanka Sharma & Gireesh Chandra Prasad

The new Income Tax Bill, 2025, which incorporates feedback from a parliamentary committee, will be introduced in the Lok Sabha on Monday.

The spending package includes a significant payout to state-owned fuel retailers for past losses and funds for a new highway, a regional development plan for the Northeast, and a technical education scheme.

A substantial portion of the budget—₹30,000 crore—has been earmarked to compensate the country's three public sector oil marketing companies (OMCs): Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. These firms have absorbed losses from selling cooking gas (LPG) at government-regulated prices while global prices remained high. The payment will be made in 12 installments, ensuring the companies can continue to procure LPG and maintain their capital expenditure, according to a government statement.

The cabinet has also sanctioned a targeted subsidy of ₹12,000 crore for free cooking gas connections under the Ujjwala scheme, for FY26. This programme provides a subsidy of ₹300 for each 14.2 kg LPG cylinder, for up to nine refills per year.