Lok Sabha passes Finance Bill, 2025 with 35 amendments; bill now in Rajya Sabha

The Lok Sabha, on Tuesday, advanced the legislative process by passing the Finance Bill 2025, which includes 35 government amendments, notably the removal of a 6% digital tax on online advertisements. This passage marks the completion of the Lok Sabha’s role in the Budgetary approval process for the fiscal year 2025-26. The Bill will now be reviewed by the Rajya Sabha. Once the Rajya Sabha grants its approval, the Budget process for 2025-26 will be finalised. 

The Union Budget for 2025-26 outlines a total expenditure of Rs 50.65 lakh crore, reflecting a 7.4% increase compared to the current fiscal year. The proposed capital expenditure for the upcoming fiscal year is set at Rs 11.22 lakh crore, with an effective capital expenditure of Rs 15.48 lakh crore. The Budget projects a gross tax revenue collection of Rs 42.70 lakh crore and anticipates a gross borrowing of Rs 14.01 lakh crore. These figures underscore the government's strategy to boost economic growth through increased spending and strategic borrowings.

Significant allocations have been made towards Centrally Sponsored Schemes, with Rs 5,41,850.21 crore earmarked for the financial year commencing April 1, 2025. This is a noticeable increase from the Rs 4,15,356.25 crore allocated for the current financial year. For central sector schemes, Rs 16.29 lakh crore is allocated for FY26, up from Rs 15.13 lakh crore in 2024-25. The increase in budget estimates is attributed to rising payments for interest on market loans and enhanced provisions for Armed Forces and employment generation schemes. 

The Budget also details the distribution of financial resources to states, including devolution of the states' share and grants/loans through Centrally Sponsored Schemes. A total of Rs 25,01,284 crore will be transferred to states in Budget 2025-26, marking an increase of Rs 4,91,668 crore over the actual figures from 2023-24. Furthermore, the fiscal deficit is projected at 4.4% for FY26, a reduction from the 4.8% deficit in the current fiscal year. This indicates the government's focus on fiscal prudence while maintaining growth-oriented spending. 

The Gross Domestic Product (GDP) for the fiscal year 2025-26 is estimated at Rs 3,56,97,923 crore, representing a 10.1% increase over the revised estimates for FY2024-25. The National Statistical Office (NSO) released these figures, highlighting the government's aim for robust economic growth. As the Rajya Sabha prepares to deliberate on the Finance Bill, the focus will be on the seamless execution of these ambitious plans aimed at fostering economic stability and growth.