By The Sampadak Express
On Tuesday, the Lok Sabha passed the Finance Bill 2025, incorporating 35 amendments proposed by the government, one of which abolishes the 6% digital tax on online advertisements. With this, the Lok Sabha has completed its part in the budget approval process. The Bill will now be presented to the Rajya Sabha for further consideration.
Once the Rajya Sabha approves the Bill, the Budget process for the fiscal year 2025-26 will be officially concluded.
Union Budget 2025-26 Highlights
The Union Budget for 2025-26 proposes a total expenditure of ₹50.65 lakh crore, marking a 7.4% increase from the current fiscal. The capital expenditure for the coming year is set at ₹11.22 lakh crore, with an effective capital expenditure of ₹15.48 lakh crore.
The budget also targets a gross tax revenue collection of ₹42.70 lakh crore, with gross borrowings estimated at ₹14.01 lakh crore.A significant portion of the budget, ₹5.41 lakh crore, has been allocated to Centrally Sponsored Schemes for the financial year starting April 1, 2025, an increase from ₹4.15 lakh crore in the current fiscal year. For central sector schemes, ₹16.29 lakh crore has been earmarked for FY26, compared to ₹15.13 lakh crore in FY25.
Reasons for Increased Expenditure
The increased budget estimates for 2025-26 are due to various factors, including higher interest payments on market loans, treasury bills, external loans, small savings, and provident funds. There is also a greater allocation for the Armed Forces, including capital expenditure, and more provisions for employment generation schemes.
Transfer of Resources to States
The total resources being transferred to states, including the devolution of their share, grants/loans, and releases under Centrally Sponsored Schemes, amount to ₹25.01 lakh crore. This represents an increase of ₹4.91 lakh crore over the actuals of 2023-24.
Fiscal Deficit and GDP Estimates
The fiscal deficit for FY26 is projected at 4.4% of GDP, a reduction from the 4.8% deficit in the current fiscal year.The GDP for FY2025-26 is estimated to be ₹3,56,97,923 crore, reflecting a growth of 10.1% compared to the Revised Estimates for FY2024-25 of ₹3,24,11,406 crore, as released by the National Statistical Office (NSO).
Once the Rajya Sabha approves the Finance Bill 2025, the budget process for the upcoming financial year will be complete, paving the way for its implementation.
