Finance Minister Nirmala Sitharaman to Discuss Finance Bill in Lok Sabha Today
Union Finance Minister Nirmala Sitharaman is set to reply to the discussion on the Finance Bill in the Lok Sabha today at around 4 pm. This follows the passage of the Appropriation Bill for the central government’s expenditure for 2024-25.
Key Highlights of the Finance Bill
The Finance Bill aims to complete the budget process for 2024-25. Here are some key points:
- The fiscal deficit target is set at 4.9% of GDP, with plans to reduce it below 4.5% by 2025-26.
- Capital expenditure is set at Rs 11.11 lakh crore, an 11.11% increase from the previous year.
- Customs duties on various products have been adjusted to support domestic manufacturing and reduce costs for consumers.
- Imported gold, silver, leather goods, and seafood will become cheaper due to reduced duties.
- Long-term and short-term capital gains taxes have been increased, but exemptions for lower and middle-income classes have also been raised.
- An amendment in the Finance Bill offers relief on capital gains tax for property transactions.
- The angel tax for startups has been abolished to boost the entrepreneurial ecosystem.
Economic Outlook
India is expected to remain the fastest-growing major economy in 2024-25, with a projected growth rate of 6.5-7.0%, according to Chief Economic Adviser V Anantha Nageswaran.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money and finances. In India, this person is Nirmala Sitharaman.
Nirmala Sitharaman -: Nirmala Sitharaman is the current Finance Minister of India. She helps make decisions about how the government spends and collects money.
Lok Sabha -: The Lok Sabha is one of the two houses of India’s Parliament. It is where elected representatives discuss and make laws for the country.
Finance Bill -: The Finance Bill is a proposal made by the government that includes all the financial changes needed to implement the budget. It needs to be approved by the Parliament.
Appropriation Bill -: The Appropriation Bill is a law that allows the government to spend money from the country’s budget. It is necessary for the government to function and provide services.
Fiscal deficit -: A fiscal deficit happens when the government spends more money than it earns. The target of 4.9% of GDP means the government plans to spend a bit more than it earns, but not too much.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year. It helps measure how big the economy is.
Customs duties -: Customs duties are taxes that the government charges on goods coming into the country. Changing these taxes can help support local businesses by making imported goods more expensive.
Capital gains tax -: Capital gains tax is a tax on the profit made from selling something valuable, like property or stocks. Adjusting this tax can affect how people invest their money.
Angel tax -: Angel tax is a tax on the money that startups receive from investors. Abolishing this tax means startups can get more money to grow and innovate without paying extra taxes.
Startups -: Startups are new businesses that are just beginning. They often have new ideas and need money to grow and succeed.
Innovation -: Innovation means creating new ideas, products, or ways of doing things. It is important for progress and making life better.
