Nirmala Sitharaman to Address Lok Sabha on Finance Bill

Union Finance Minister Nirmala Sitharaman will respond to the Finance Bill discussion in Lok Sabha at around 4 pm today. The Finance Bill’s passage completes the budget process, targeting a fiscal deficit of 4.9% and focusing on capex, tax reforms, and boosting the start-up ecosystem.

Union Finance Minister Nirmala Sitharaman is set to address the Lok Sabha today at around 4 pm to discuss the Finance Bill. This follows the passage of the Appropriation Bill, which outlined central government expenditures for 2024-25.

The Finance Bill passage will finalize the budget process. Presenting the Union Budget, Sitharaman set a fiscal deficit target at 4.9% of GDP, aiming to reduce it below 4.5% by 2025-26. The fiscal deficit, the difference between total revenue and expenditure, is a critical measure of economic health.

Key changes in the budget include an 11.11% increase in capital expenditure to Rs 11.11 lakh crore and multiple tax adjustments. Duties on imported gold, silver, leather goods, and seafood were lowered, and comprehensive reforms were made to support domestic manufacturing, exports, and consumer interests.

Sitharaman also announced an increase in both short-term and long-term capital gains tax rates, alongside proposed exemptions to benefit lower and middle-income classes. Further amendments offer significant relief on capital gains tax for property transactions.

The budget emphasizes bolstering the start-up ecosystem by abolishing angel tax for all investors, a long-standing industry request. This move aims to drive investments into startups, crucial for economic growth and innovation. Sitharaman presented her seventh consecutive budget on July 23, setting a new record.

According to Chief Economic Adviser V. Anantha Nageswaran, India is expected to remain the fastest-growing major economy in 2024-25, with economic growth projected between 6.5-7.0%.

(With inputs from agencies.)