The Lok Sabha approved the 2025 Finance Bill, with 35 amendments by the Indian government, notably removing the 6% digital tax on online ads. This signals progress in the budget approval process, with the Rajya Sabha next in line for consideration.
The 2025-26 Union Budget plans total expenditure at ₹50.65 lakh crore, up by 7.4% from the current fiscal. It proposes a capital expenditure of ₹11.22 lakh crore and an effective outlay of ₹15.48 lakh crore. Gross tax revenue is anticipated at ₹42.70 lakh crore, with gross borrowing projected at ₹14.01 lakh crore per official budget documents.
For the 2025-26 fiscal year starting on April 1, 2025, ₹5,41,850.21 crore is reserved for Centrally Sponsored Schemes, surpassing the ₹4,15,356.25 crore allotted for the current fiscal. Additionally, central sector schemes in FY26 will receive around ₹16.29 lakh crore, a rise from the ₹15.13 lakh crore in FY24-25.
Multiple factors, such as rising interest payments on loans, increased demands from armed forces, and higher allocations to states, have driven up the 2025-26 budget estimates. This includes interest payments on market loans, treasury bills, external loans, small savings, provident funds, and provisions for employment schemes.
The fiscal deficit for FY26 is targeted at 4.4%, lower than the current fiscal’s 4.8%. The GDP for FY2025-26 is estimated at ₹3,56,97,923 crore, a 10.1% growth over revised FY2024-25 figures by NSO. Projections are positive for India’s economic performance next year.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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