India’s Parliament approves Finance Bill 2025, 8th Pay Commission to revise salaries #IndiaFinance

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On Thursday, the Indian Parliament passed the Finance Bill, 2025, after it was returned by the Rajya Sabha to the Lok Sabha.

The passage of this bill marks the completion of the budget process, which began on February 1 when the Union Budget was presented.

During the debate, Finance Minister Nirmala Sitharaman responded to criticisms from opposition leaders, including former Finance Minister P. Chidambaram.

She rejected allegations of unfair treatment toward states governed by opposition parties and highlighted the financial support provided to states like Tamil Nadu and Kerala under the current government.

Sitharaman shared details of how Tamil Nadu’s share of tax devolution has significantly increased in recent years. Between 2004 and 2014, Tamil Nadu received Rs. 94,971 crore, but from 2014 to 2024, it received Rs. 2.92 lakh crore, a 207% increase.

She also pointed out that Kerala received Rs. 1.57 lakh crore during the same period, a 239% increase from the previous decade. The Finance Minister stressed that these increases were a result of the Modi government’s focus on supporting states, particularly post-COVID-19, with special assistance for capital expenditure.

Sitharaman also addressed the middle class, mentioning that Prime Minister Modi had approved the establishment of the 8th Central Pay Commission in January 2025, which will revise the salaries and benefits of Central Government employees and pensioners.

She further clarified that the Finance Bill would not change existing pension rules but would validate existing provisions for pensioners.

Turning to criticism from Trinamool Congress member Sagarika Ghose, Sitharaman defended the Modi government, saying that it had worked tirelessly to improve the lives of ordinary citizens.

She pointed to various government initiatives such as the Jan Dhan Yojana, PM Awas Yojana, Swachh Bharat Mission, and the Ujjwala Yojana, all of which have had a positive impact on millions of people across the country.

Sitharaman also responded to Chidambaram’s concerns regarding digital transactions and fiscal deficits. She assured the Parliament that the government had addressed these issues and was on track to keep the fiscal deficit below 4.5% in the coming year.

The Finance Minister emphasized that the government had introduced income tax relief in the budget as a gesture of respect to Indian taxpayers. She also mentioned the extension of deadlines for exporters to comply with new regulations, allowing them an additional year to meet their requirements.

The debate ended with several members of Parliament participating in the discussions, highlighting the importance of these measures for the nation’s economic growth and the welfare of its citizens.

(Nirmala Sitharaman. Photo courtesy: twitter.com/FinMinIndia)