Finance Bill 2025 Approved by Lok Sabha
Finance Minister Nirmala Sitharaman introduced the revised Finance Bill 2025 in the Lok Sabha, which has now been passed. The bill includes 25 amendments, notably the abolition of the 6% digital tax (Google tax) on online advertisements. With its passage in the Lok Sabha, the bill now awaits approval from the Rajya Sabha for final implementation.
Key Highlights of the Finance Bill 2025
If approved by the Rajya Sabha, the Finance Bill 2025 will be enacted, finalizing a total proposed expenditure of ₹50.65 lakh crore for the Union Budget 2025-26, marking a 7.4% increase compared to the current financial year.
Major Amendment: Removal of Online Advertisement Tax
While presenting the bill in Parliament, the Finance Minister stated, “I have proposed to abolish the 6% equalization levy on online advertisements to reduce uncertainty in the international economic landscape.” The removal of this tax is expected to facilitate smoother digital transactions and encourage more foreign investment in India’s digital advertising sector.
Proposed Budget Allocation for FY 2025-26
In the Union Budget 2025-26, the government has allocated ₹5,41,850.21 crore for centrally supported schemes, reflecting an increase from ₹4,15,356.25 crore in the current financial year. This rise in expenditure is attributed to various economic priorities and developmental programs.
Fiscal Deficit and GDP Estimates
- The fiscal deficit is projected to be 4.4% in FY 2026, maintaining the same level as the current fiscal year.
- The Gross Domestic Product (GDP) is estimated to reach ₹3,56,97,923 crore, reflecting a 10% growth compared to the previous year.
Next Steps for Finance Bill 2025
With Lok Sabha approval secured, the Finance Bill 2025 now heads to the Rajya Sabha for review. If passed, it will mark a significant policy shift, particularly in the digital taxation landscape, aiming to boost investment and economic growth in India’s digital economy.
