Lok Sabha Passes Finance Bill 2025 with 35 Amendments

Ira Singh
Khabar Khabaron Ki,25 March’25

The Lok Sabha on Tuesday passed the Finance Bill 2025, incorporating 35 government amendments, marking the completion of its part of the Budgetary approval process, according to information.

One of the key amendments in the Finance Bill 2025 is the abolition of the 6 per cent digital tax on online advertisements, a move expected to benefit the digital economy and advertising sector. Once the Rajya Sabha approves the Bill, the Budget process for the fiscal year 2025-26 will be complete.

Key Highlights of the Union Budget 2025-26
The Union Budget 2025-26 proposes a total expenditure of Rs 50.65 lakh crore, reflecting a 7.4 per cent increase over the current fiscal year. The capital expenditure for the upcoming financial year is pegged at Rs 11.22 lakh crore, with an effective capital expenditure of Rs 15.48 lakh crore, stated official release.

The Budget also outlines a gross tax revenue collection target of Rs 42.70 lakh crore, while the gross borrowing for the year is projected at Rs 14.01 lakh crore.

Sectoral Allocations and Fiscal Outlook
• Centrally Sponsored Schemes: Rs 5,41,850.21 crore allocated for FY26, compared to Rs 4,15,356.25 crore in FY25.
• Central Sector Schemes: Rs 16.29 lakh crore earmarked, up from Rs 15.13 lakh crore in FY25.
• Fiscal Deficit: Targeted at 4.4 per cent of GDP for FY26, down from 4.8 per cent in the current fiscal.
• GDP Growth Estimate: The GDP for FY26 is estimated at Rs 3,56,97,923 crore, reflecting a 10.1 per cent growth over the revised estimates of FY25.
• Funds Transfer to States: Total resources transferred, including devolution of states’ share, grants, and loans, are projected at Rs 25,01,284 crore, an increase of Rs 4,91,668 crore over actuals from FY24.

The rise in budgetary allocations is attributed to increased spending on interest payments for market loans, external borrowings, and small savings schemes. Additionally, higher capital expenditure for the Armed Forces and employment generation schemes have contributed to the overall expansion of the Budget estimates.