Lok Sabha passes Finance Bill 2025 with 35 amendments: Here’s all you need to know

The Lok Sabha passed the Finance Bill 2025 on Tuesday, March 25, along with 35 government amendments, including one abolishing a six per cent digital tax on online advertisements. With the passage of the Finance Bill 2025, the Lok Sabha completed its part of the Budgetary approval process. The Upper House, Rajya Sabha, will now consider the Bill. After the Rajya Sabha approves the Bill, the Budget process for 2025-26 will be complete.

The Union Budget 2025-26 envisages a total expenditure of ₹50.65 lakh crore, an increase of 7.4 per cent over FY25. The total capital expenditure proposed for the next fiscal year is ₹11.22 lakh crore, with an effective capital expenditure of ₹15.48 lakh crore. It proposes a gross tax revenue collection of ₹42.70 lakh crore and a gross borrowing of ₹14.01 lakh crore.

Also Read: India to drop ‘Google tax’ from 1 April amid US tariff threats

Finance Bill 2025: Key metrics you must know

"This Finance Bill, we have attempted to do several things, which as per as the aspiration and the expectation of the people of India and also the goal that the Prime Minister has given us towards the Viksit Bharat by 2047," said FM Sitharaman. She said the bill aims to provide tax certainty.

"It rationalises a lot of provisions which are towards ease of doing business and also provides unprecedented tax relief," she said. The minister talked about the tax relief provided to people in the union budget and the government's nudge to increase tax mobilisation from those who have foreign assets.

According to Budget documents, ₹5,41,850.21 crore has been earmarked for Centrally Sponsored Schemes for the upcoming financial year starting April 1, 2025. This compares with ₹4,15,356.25 crore for the current financial year. For central sector schemes, ₹16.29 lakh crore have been earmarked for FY26 compared to ₹15.13 lakh crore for 2024-25.

Also Read: New income tax bill reaches Parliament: Finance Minister Nirmala Sitharaman tables I-T Bill 2025 in Lok Sabha

Budget 2025 estimates

Budget estimates of expenditure for 2025-26 have increased due to several factors, including a rise in interest payments on market loans, treasury bills, external loans, and provident funds; higher requirements of Armed Forces, including capital expenditure and provisions for the employment generation scheme.

The total resources being transferred to states, including the devolution of states' share, grants/loans and releases under Centrally Sponsored Schemes, in Budget 2025-26 are ₹25,01,284 crore, a rise of ₹4,91,668 crore over the actuals of 2023-24.

Also Read: Delhi budget 2025: CM Rekha Gupta unveils ₹1 lakh crore blueprint for development

The fiscal deficit for FY26 is projected at 4.4 per cent against 4.8 per cent in the current fiscal. The GDP for FY2025-26 is estimated at ₹3,56,97,923 crore, which is 10.1 per cent above the Revised Estimates for FY2024-25 of ₹3,24,11,406 crore released by the National Statistical Office(NSO). The government presented the Union Budget on February 1. The passing of the Finance Bill 2025 marks the end of the budget process in Parliament.