The government received more than 60,000 inputs from citizens regarding the new Income Tax Bill, 2025, Union Finance Minister Nirmala Sitharaman said on Monday.

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

“The government’s emphasis post-Covid-19 pandemic has been to allocate funds for public expenditure in capital building. The perception that the focus has shifted from expenditure to consumption is not correct. Capital expenditure (Capex) has been enhanced, and simultaneously, we’ve provided relief in 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 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 providing relief to taxpayers earning up to Rs 12 lakh per annum.

“We are committed to the fiscal deficit path set in the July Budget, aiming for below 4.5 percent,” she said.

Reforms aimed at boosting manufacturing, improving the Ease of Doing Business, and enhancing social infrastructure are all being maintained.

“We won’t stop with that. The momentum of reforms shall continue. Newer areas are also being opened up, and that’s why, in the last two years, we have seen investment in the space sector, nuclear sector, etc.,” the Finance Minister emphasized.

“I expect that even state governments will come forward to promote the Ease of Doing Business,” she added.

The Budget has not reduced sectoral allocations, and the effective capital expenditure for the next fiscal year 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 percent of GDP in the Budget for 2025-26, while the fiscal deficit is 4.4 percent.

(Inputs from IANS)