The Lok Sabha passed the Finance Bill, 2025, incorporating 35 amendments proposed by the government on Tuesday. Union Finance Minister Nirmala Sitharaman introduced the revised Finance Bill earlier in the day, seeking approval for key proposals from the Union Budget.

One of the key amendments is the removal of the 6 per cent digital tax, commonly known as the "Google Tax," on online advertisements.

"I have proposed to remove the 6 per cent equalisation levy for advertisements. Equalisation levy on online advertisements to be abolished to address uncertainty in international economic conditions," the Finance Minister stated in Parliament.

The Union Budget 2025, which was presented by FM Sitharaman on February 1, outlines a total expenditure of Rs 50.65 trillion, marking a 7.4 per cent increase over the current fiscal year.

"Finance Bill, 2025 provides unprecedented tax relief to honour taxpayers," Sitharaman added.

Capital Expenditure For FY26

According to the Budget documents, the total capital expenditure for the financial year 2025-26 is estimated at Rs 11.22 trillion. The Budget also proposes a gross tax revenue collection of Rs 42.70 trillion and a gross borrowing of Rs 14.01 trillion.

For Centrally Sponsored Schemes (CSS), Rs 5,41,850.21 crore has been allocated for FY26, up from Rs 4,15,356.25 crore for FY25.

The fiscal deficit for FY26 is projected at 4.4 per cent, a reduction from 4.8 per cent in the current FY25.

The GDP for FY2025-26 is estimated at Rs 3,56,97,923 crore, reflecting a 10.1 per cent increase over the Revised Estimates (RE) for FY2024-25, which stand at Rs 3,24,11,406 crore, as released by the National Statistical Office (NSO).

With the passage of the Finance Bill 2025, the Lok Sabha has completed its part in the Budget approval process. The Bill will now be sent to the Rajya Sabha for consideration. Once approved by the Rajya Sabha, the Budget process for 2025-26 will be finalised.