The Rajya Sabha on Thursday approved the Finance Bill 2025 and returned it to the Lok Sabha with 35 government amendments. These include an amendment to eliminate 6 percent digital tax on online advertisements. In this way, the budget process of 2025-26, which started on 1 February, was completed. The House also returned the Appropriation Bill (3) by sound vote. Earlier in the day, Finance Minister Nirmala Sitharaman introduced both bills in the House. The Lok Sabha passed the Finance Bill on 25 March and the Appropriation Bill on 21 March.
Responding to the discussion in the evening, the Finance Minister said that the trend of the Finance Ministry would have to take precautions and not let the revenue go by hand. He said, ‘Here we wanted to use this opportunity to show our respect for Indian taxpayers. We have taken a step towards setting a limit of Rs 12 lakh, so that no one will have to pay any tax above.
The Union Budget 2025-26 is estimated at a total expenditure of Rs 50.65 lakh crore, which is 7.4 percent more than the current financial year. The total capital expenditure proposed for the next financial year is Rs 11.22 lakh crore and effective capital expenditure is Rs 15.48 lakh crore. It proposes a gross tax revenue collection of Rs 42.70 lakh crore and a gross loan of Rs 14.01 lakh crore.
According to budget documents, Rs 5,41,850.21 crore has been allocated for the Central Government’s schemes for the financial year starting from April 1, 2025. This is compared to Rs 4,15,356.25 crore for the current financial year. 16.29 lakh crore rupees have been allocated for FY 26 for central schemes, while Rs 15.13 lakh crore for 2024-25.
The budget estimate of expenditure for FY 2025-26 has increased due to several reasons. These included increase in payment of interest on market loans, treasury bills, external loans, small savings and provident funds; Increasing needs of armed forces including capital expenditure and more provisions for employment generation scheme etc. are included. In the budget 2025-26, a total resource resources of Rs 25,01,284 crore are being transferred to the states, which is Rs 4,91,668 crore more than the actual figures of 2023-24. These include the amount issued under the stake of states, transfer of grant/loan and centrally sponsored schemes.
First Published – March 27, 2025 | 10:39 pm IST