Finance

The Union Government has raised the excise duty on petrol and diesel by ₹2 per litre, effective from April 8, 2025. The new excise duty on petrol will be ₹13 per litre, while on diesel it will be ₹10 per litre. Despite the hike, the Ministry of Petroleum and Natural Gas confirmed that retail prices will remain unchanged. The move, made under the Central Excise Act and the Finance Act, has drawn criticism from the Congress, which accused the government of taking advantage of falling global crude oil prices to impose additional taxes on the public.

The Reserve Bank of India (RBI) announced that it will soon issue ₹10 and ₹500 denomination banknotes in the Mahatma Gandhi (New) Series, featuring the signature of RBI Governor Sanjay Malhotra. These new notes will have the same design and security features as the existing ₹10 and ₹500 notes in circulation. The RBI clarified that all previous ₹10 and ₹500 notes will continue to be legal tender. Governor Malhotra, who took charge in December 2024, replaces Shaktikanta Das, and this update reflects his signature on newly issued currency.

Finance Minister Nirmala Sitharaman will launch the "NITI NCAER States Economic Forum" portal on April 1, 2025, providing access to a vast repository of data covering social, economic, and fiscal parameters of Indian states over the past three decades. Developed by NITI Aayog in collaboration with NCAER, the portal offers detailed information across five key areas: Demography, Economic Structure, Fiscal, Health, and Education. It will enable users to track state-level progress, compare data against national averages, and facilitate informed policymaking and debates. With an intuitive design, the portal aims to support evidence-based decisions and foster regional development through easy access to comprehensive, historical, and real-time data.

The Union Cabinet has approved a 2% hike in Dearness Allowance (DA) for central government employees and pensioners, set to take effect from January 1, 2025. This increase will raise the DA from 53% to 55% of the basic pay/pension, benefiting approximately 1.15 crore individuals, including 48.66 lakh employees and 66.55 lakh pensioners. The decision will result in an annual expenditure of ₹6,614.04 crore for the government. The hike comes ahead of the expected 8th Pay Commission and provides financial relief to employees dealing with rising inflation.

The Lok Sabha has passed the Finance Bill 2025, which includes 35 amendments, one of which abolishes the 6% digital tax on online advertisements. With this approval, the Lok Sabha has completed its part of the budgetary process, and the Bill will now be presented to the Rajya Sabha. The Union Budget for 2025-26 proposes a total expenditure of ₹50.65 lakh crore, a 7.4% increase from the previous fiscal year. Notably, the fiscal deficit is projected at 4.4% of GDP, down from 4.8% in the current year, and the GDP for FY2025-26 is estimated to grow by 10.1%.

The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points to 6.25%, marking the first rate cut in five years. This decision aims to stimulate economic growth by making borrowing cheaper, thus encouraging investment and spending. The RBI also revised its GDP growth forecast for FY26 to 6.7%. Additionally, retail inflation is projected at 4.2% for the next fiscal year, with expectations of it gradually aligning with the RBI’s target. Governor Sanjay Malhotra emphasized that despite global uncertainties, India's economy remains resilient.