Lok Sabha Passes Finance Bill 2025; Here All What You Need to Know

The Lok Sabha passed the Finance Bill 2025 on Tuesday, along with 35 government amendments, one of which eliminates a 6% digital tax on online advertisements. With the passage of the Finance Bill 2025, the Lok Sabha concluded its portion of the budgetary approval process. The Bill will now be considered by the Upper House, or Rajya Sabha.

After the Rajya Sabha passes the Bill, the Budget process for 2025-26 will be completed.

The Union Budget 2025-26 proposes a total expenditure of Rs.50.65 lakh crore, a 7.4% increase over the current financial. The entire capital expenditure anticipated for the next financial year is Rs.11.22 lakh crore, with an effective capital expenditure of Rs.15.48 lakh crore.

It estimates a gross tax revenue collection of Rs 42.70 lakh crore and a gross borrowing of Rs.14.01 lakh crore.

According to Budget documents, Rs.5,41,850.21 crore has been allocated to Centrally Sponsored Schemes for the financial year beginning April 1, 2025. This compared to Rs.4,15,356.25 crore in the current financial year.

For central sector schemes, Rs 16.29 lakh crore has been set aside for FY26, compared to Rs.15.13 lakh crore for 2024-25.

Budget estimates for 2025-26 have increased for a variety of reasons, including an increase in interest payments on market loans, treasury bills, external loans, small savings, and provident funds; increased requirements of the Armed Forces, including capital expenditure; and more provisions for employment generation schemes.

The total resources allocated to states in Budget 2025-26, comprising devolution of states’ share, grants/loans, and releases under Centrally Sponsored Schemes, are Rs 25,01,284 crore, up Rs 4,91,668 crore from the actuals in 2023-24.

The budget deficit for FY26 is predicted to be 4.4%, compared to 4.8% in the current financial year.

The GDP for FY2025-26 is predicted to be Rs.3,56,97,923 crore, up 10.1% from the National Statistical Office’s (NSO) Revised Estimates for FY2024-25 of Rs.3,24,11,406 crore.

For Official Finance Bill Download PDF Given Below: