Govt received over 60,000 inputs from citizens towards new Income Tax Bill: FM

Addressing a post-Budget event here, the Finance Minister said the review of the Income-Tax Act, 1961 has a big component of Prime Minister Narendra Modi's principle of 'Jan Bhagidari'.

"The government's emphasis post-Covid-19 pandemic has been to put money for public expenditure in capital building continues. The perception of the focus shifting from expenditure to consumption is not right. Capex has been enhanced and simultaneously, we've given relief in the Personal Income Tax," she said.

She introduced the new Income Tax Bill, 2025, in the Lok Sabha last week, as part of the tax reforms to streamline and simplify the provisions so that they are easier to understand and reduce the scope for legal disputes.

The Finance Minister also thanked PM Modi for being considerate in giving relief to the taxpayers earning up to Rs 12 lakh per annum.

"We are committed to fiscal deficit path set in July Budget, aiming below 4.5 per cent," she mentioned.

Reforms towards boosting manufacturing, Ease of Doing business and steps for the betterment of social infrastructure are all being kept in place.

"We won't stop with it. The momentum of reforms shall continue. Newer areas are also being opened up and that's why in the last two years we have been seeing investment in the space sector, nuclear sector etc," the Finance Minister emphasised.

"I expect that even state governments will come forward to promote Ease of Business," she added.

The Budget has not reduced sectoral allocations and the effective capital expenditure during the next fiscal is estimated at Rs 19.08 lakh crore, according to FM Sitharaman.

The Finance Minister said that the effective capital expenditure works out to 4.3 per cent of the GDP in the Budget for 2025-26 while the fiscal deficit is 4.4 per cent.