Nirmala Sitharaman presents Finance Bill 2024 in Lok Sabha

New Delhi: Finance Minister Nirmala Sitharaman on Tuesday introduced the Finance Bill 2024 for the fiscal year 2024-2025 in the Lok Sabha. While it was expected that the legislation would be passed on Tuesday with an address by the finance minister, it did not hapen. The legislation is likely to be passed on Wednesday.

Discussions on the Bill saw the members of the Opposition pointing at several issues with the Budget and the financial sector, while members from the treasury benches sought to highlight the positives.

Speaking on the Bill, TMC MP Mahua Moitra said that direct and indirect taxes must be balanced if we want an equitable economy. “65 per cent of tax collection in India is from indirect tax, and about 35 per cent is from direct tax. The super-rich pay the same tax as the middle class. The percentage of GST imposed on products in India is very high,” she said.

BJP MP P P Chaudhary said that the reduction in taxation will lead to higher aggregate tax collection and help the government fund its welfare schemes. The abolition of Angel Tax, he said, will help several new startups. “It will help increase flow of capital to new businesses, potential for job creation, bring more innovative ideas into the market and attractiveness of the ecosystem to domestic and foreign investors,” he said. BJP’s BS Bommai said that the opposition to the tax is mostly political.

Congress’ Amar Singh asked the finance minister the steps taken by the government to address unemployment and low consumption. “The Finance Minister did not say anything about inflation in her Budget speech. The agriculture sector is in distress; the Economic Survey says sectoral growth was 4.7 per cent last year compared to 1.4 per cent (2023-24). What happened to all the promises you made,” Singh asked.

Congress MP Tanuj Punia, pointing at the 12 per cent GST on butter, said: “Even Lord Krishna would not be able to consume butter had he lived in present times.”

On Monday, the finance minister introduced the Appropriation (No 2) Bill 2024, which allows the government to use some money from the Consolidated Fund of India towards the expenditure of the central government for the financial year 2024-25. This legislation allowed for the expenditure of nearly Rs 140 lakh crore.