Parliament Approves Finance Bill 2025, Finalizes Budget Exercise

Why in the News ?

The Parliament has completed the Union Budget 2025-26 process with the Rajya Sabha returning the Finance Bill 2025 to the Lok Sabha, including 35 amendments. This marks the conclusion of the annual budgetary exercise for the upcoming fiscal year.

About the Parliamentary Approval of Union Budget 2025-26:

  • The Parliament has completed the budgetary exercise for the fiscal year 2025-26.
  • On March 27, 2025, the Rajya Sabha returned the Finance Bill 2025 and the Appropriation (No. 3) Bill 2025 to the Lok Sabha after discussions.
  • The Finance Bill 2025 was passed by the Lok Sabha on March 25, while the Appropriation Bill was cleared on March 21.
  • The Finance Bill includes 35 government amendments, notably abolishing a 6% digital tax on online advertisements.

Key Announcements by Finance Minister Nirmala Sitharaman

  • During the debate, Finance Minister Nirmala Sitharaman emphasized caution in revenue management while honoring taxpayers.
  • The income tax exemption threshold has been raised to ₹12 lakh to provide relief to taxpayers.
  • The Union Budget 2025-26 proposes a total expenditure of ₹50.65 lakh crore, reflecting a 7.4% increase over the current fiscal.
  • Capital expenditure is set at ₹11.22 lakh crore, with an effective capital expenditure of ₹15.48 lakh crore.

Budget Allocations and Revenue Targets

  • The budget aims to achieve a gross tax revenue collection of ₹42.70 lakh crore and a gross borrowing of ₹14.01 lakh crore.
  • A total of ₹5,41,850.21 crore has been allocated for Centrally Sponsored Schemes in FY 2025-26, compared to ₹4,15,356.25 crore in the current fiscal.
  • The budget aligns with the government’s vision for economic growth, infrastructure development, and enhanced social welfare.

This comprehensive budget aims to strengthen the economy, drive growth, and support inclusive development in the upcoming fiscal year.