Lok Sabha passes Finance Bill 2025: What are the changes?
What's the story
The Lok Sabha has passed the Finance Bill for 2025, which has 35 amendments proposed by the Indian government.
One of the most notable changes is the scrapping of the 6% digital tax on online advertisements.
Following this bill passage, the Lok Sabha has played its part in the budgetary approval process. The Rajya Sabha will now consider this bill.
Budget overview
Total expenditure and capital outlay
The Union Budget for 2025-26 estimates a total expenditure of ₹50.65 lakh crore, an increase of 7.4% over the current fiscal.
The proposed capital expenditure for the next fiscal is ₹11.22 lakh crore with an effective capital outlay of ₹15.48 lakh crore.
This budget also estimates gross tax revenue collection of ₹42.70 lakh crore and gross borrowing of ₹14.01 lakh crore, according to official documents on the budget proposal.
Scheme allocations
Allocations for centrally sponsored schemes
For the 2025-26 fiscal year beginning April 1, 2025, a total of ₹5,41,850.21 crore has been set aside for Centrally Sponsored Schemes.
This is higher than the ₹4,15,356.25 crore allocated for the current fiscal.
Around ₹16.29 lakh crore has also been earmarked for central sector schemes in FY26, compared to ₹15.13 lakh crore allocated in FY24-25.
Budget increase
Reasons for increased budget estimates and resource allocation
Several factors have led to the increase in budget estimates for 2025-26. These include increased interest payments on market loans, the treasury bills, external loans, small savings as well as provident funds.
There's also a higher demand from the armed forces and additional provisions for employment generation schemes.
Total resources allocated to states under various schemes have also seen a significant increase this year.
Economic forecast
Fiscal deficit projection and GDP estimate for FY26
The fiscal deficit for FY26 is pegged at 4.4%, down from the current fiscal's estimate of 4.8%.
The GDP for FY2025-26 is estimated at ₹3,56,97,923 crore. This is a growth of 10.1% over the revised estimates for FY2024-25 released by the National Statistical Office (NSO).
Projections reflect an optimistic outlook on India's economic performance in the next financial year.