Priyanka Tiwari
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The Lok Sabha on Tuesday passed the Finance Bill 2025, completing its share of the Union Budget 2025-26 approval process. The bill included 35 government amendments, the most notable being the elimination of the 6% digital tax on online advertisements.
The Rajya Sabha will now take up the bill, after which the entire budget process will be complete.
Union Budget 2025-26: Key Highlights
The Union Budget 2025-26 outlines a total expenditure of ₹50.65 lakh crore, marking a 7.4% increase over the current fiscal year. Key components include:
Capital Expenditure: ₹11.22 lakh crore
Effective Capital Expenditure: ₹15.48 lakh crore
Gross Tax Revenue: ₹42.70 lakh crore
Gross Borrowing: ₹14.01 lakh crore
Scheme Allocations and Fiscal Outlook
Centrally Sponsored Schemes:
FY26: ₹5,41,850.21 crore
FY25: ₹4,15,356.25 crore
Central Sector Schemes:
FY26: ₹16.29 lakh crore
FY25: ₹15.13 lakh crore
The rise in expenditure is attributed to factors such as:
Increased interest payments on loans and small savings
Enhanced allocations for the Armed Forces
Expanded funding for employment generation schemes
Support for States and Fiscal Deficit
The total resources to be transferred to states in FY26, including devolutions, grants, and loans, amount to ₹25.01 lakh crore, a substantial increase of ₹4.91 lakh crore over 2023-24.
The fiscal deficit is projected to narrow to 4.4% of GDP in FY26, down from 4.8% in the current fiscal.
India’s GDP Projection for FY2025-26
The National Statistical Office (NSO) estimates India’s GDP for FY2025-26 at ₹3,56,97,923 crore, representing a 10.1% increase over the revised estimate for FY2024-25.
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