February 17th 2025.
During a post-Budget event in Mumbai on Monday, Union Finance Minister Nirmala Sitharaman announced that the government had received over 60,000 inputs from citizens for the new Income Tax Bill of 2025. She highlighted that the review of the Income-Tax Act of 1961 was greatly influenced by Prime Minister Narendra Modi's principle of 'Jan Bhagidari' (public participation).
Sitharaman stressed that even amidst the pandemic, the government's focus remained on investing in capital building for public expenditure. She clarified that the perception of the government shifting its focus from expenditure to consumption was incorrect, as they had simultaneously increased capital expenditure and provided relief in Personal Income Tax.
Last week, Sitharaman introduced the new Income Tax Bill of 2025 in the Lok Sabha, as part of the government's efforts to streamline and simplify tax provisions for easier understanding and to reduce the number of legal disputes. She expressed gratitude towards PM Modi for considering the taxpayers earning up to Rs 12 lakh per annum and providing them with relief.
The Finance Minister also confirmed that the government was committed to the fiscal deficit path set in the July Budget, with the aim of keeping it below 4.5%. She mentioned that the government was implementing reforms to boost manufacturing, improve the ease of doing business, and enhance social infrastructure.
Sitharaman assured that the government will not stop at these reforms and will continue to push for progress. She highlighted how the government has also opened up new opportunities in sectors such as space and nuclear energy in the past two years. The Finance Minister added that she expects state governments to also support the ease of doing business.
Sitharaman emphasized that the Budget has not reduced sectoral allocations and that the effective capital expenditure for the next fiscal is estimated at Rs 19.08 lakh crore. She also mentioned that this amounts to 4.3% of the GDP, while the fiscal deficit for 2025-26 is estimated to be at 4.4%.
In conclusion, the government is committed to fiscal responsibility and implementing reforms to drive growth and development in various sectors. Sitharaman expressed confidence that with the support of state governments and the public, the country will continue to progress towards a brighter future.
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