“It’s a completely new invoice. It’s rewritten…It won’t change (tax charges).” Pandey was quoted as saying.
Later whereas talking at a FICCI convention on the Union Finances 2025-26, Pandey emphasised that the funds’s design ensures progress with out stoking inflation pressures.
“After we present the numbers, there may be nothing hidden elsewhere. Our whole borrowings are going into CAPEX – nothing could possibly be higher than this. It is a non-inflationary funds,” he mentioned.
The capital expenditure programme of Rs 15.48 lakh crores for fiscal yr 2025-26 consists of Rs 11.21 lakh crores in direct central authorities spending and Rs 4.27 lakh crores in grants to states for capital tasks.This strategy marks a big shift from conventional patterns the place authorities borrowing usually funded income expenditure, he mentioned.The federal government has exceeded its fiscal consolidation targets, attaining a deficit of 4.8 per cent towards the projected 4.9 per cent for the present yr, with plans to scale back it additional to 4.4 per cent within the subsequent fiscal yr.
The Union Finances 2025-26 tries to steadiness the upcoming challenges specializing in demand and provide facet imperatives. The stimulus provided within the funds will push progress whereas fostering macro-economic stability, Pandey famous.
The funds returns Rs 1 lakh crore to the center class, designed to work by market mechanisms quite than direct authorities spending.
“Whether or not residents save or eat these funds, each outcomes profit the financial system – financial savings strengthen financial institution liquidity, whereas consumption advantages unfold throughout industries,” Pandey defined.
General, the theme of the funds has been progress with equity, belief first, give stimulus to financial system and to inculcate and encourage entrepreneurship, he concluded.
Throughout the convention, Central Board of Direct Taxes Chairman, Ravi Agrawal, alluded to the basic shift in tax administration strategy, emphasising a brand new ‘PRUDENT’ framework: Proactive {and professional}, Rule-based, Person-friendly, Knowledge-driven, creating an Enabling surroundings, Non-intrusive administration, and leveraging Expertise with transparency.
“It’s now not an adversarial tax division. It’s a participative strategy geared toward progress of financial system and improved governance,” Agrawal mentioned.
Key initiatives embrace extending the up to date returns window from two to 4 years, with about 9 million up to date returns filed previously two years producing further tax income of Rs 8,500 crore.
The federal government additionally introduced rationalisation of TDS and TCS provisions, optimising thresholds and charges whereas decriminalising sure provisions. A brand new simplified direct tax code is anticipated to be offered subsequent week, marking the primary complete overhaul in a long time.
As well as, Central Board of Oblique Taxes and Customs Chairman, Sanjay Kumar Agarwal, underlined that the federal government has undertaken a complete rationalisation of customs duties throughout 8,500 tariff strains.
The reform has lowered India’s common customs obligation price from 11.65 per cent to 10.66 per cent, transferring nearer to ASEAN requirements.
“This train was performed to make constructions easy whereas guaranteeing competitiveness of Indian industries stays intact,” Agarwal mentioned.
The reforms embrace elimination of seven obligation price slabs and removing of surcharges on 82 tariff strains to simplify the tax construction. Key measures embrace obligation reductions on important minerals for semiconductors and clear power, extending export durations for handicrafts from six months to 1 yr, and customs obligation cuts on frozen fish paste from 30 per cent to five per cent to spice up marine exports. The cellular manufacturing sector, already an export success, will profit from new obligation exemptions on part elements.
On the event, Business leaders welcomed the funds’s balanced strategy. FICCI President Harsha Vardhan Agarwal referred to as it “a blueprint for resilience, innovation and long-term financial transformation,” noting that tax aid for people incomes as much as Rs 12.75 lakh every year would improve disposable earnings and spur consumption.
