Finance Minister Nirmala Sitharaman will present her seventh Union Budget at the Lok Sabha on Tuesday. Image used for representational purpose (Source: NDTV Profit)
2 years ago
Aug 06, 2024
Finance Minister Nirmala Sitharaman to introduce the Finance Bill for fiscal 2024-25 in the Lok Sabha on Tuesday, seeking its consideration and passage. This bill is essential for implementing the Budget proposals, which require approval from both houses of Parliament.
Nitin Gadkari, Minister for Road Transport and Highways, has formally requested Finance Minister Nirmala Sitharaman to reconsider and withdraw the 18% Goods and Services Tax imposed on life and medical insurance premiums. This appeal comes in response to a memorandum from the Nagpur Life Insurance Union, which highlighted several pressing issues within the insurance sector to the minster.
In a letter addressed to the Finance Minister, Gadkari emphasised that the memorandum's primary concern was the GST applied to life and medical insurance premiums.
The Finance Act is a parliamentary law through which the Union government implements its financial proposals for the upcoming financial year.
Introduced to the Lower House following the presentation of the Union Budget by the Finance Minister, the Finance Bill outlines these proposals. Once the Parliament approves them and the President gives assent, the bill becomes the Finance Act for that year.
Each financial year sees the introduction of a new Finance Act, making it an annually renewed statute. This act serves as a comprehensive framework encompassing all of the government's financial policies.
The Finance Bill forms a part of the Union Budget, with details about all the legal amendments required for the changes in taxation proposed by the Finance Minister. The Constitution defines financial legislation into two categories: Money Bills and Financial Bills.
All Money bills are Financial bills but all Financial bills are not Money bills. Finance Bill has the provision of including recommendations from Rajya Sabha, however, in case of a Money Bill, it is not mandatory. In case of a Money Bill, Lok Sabha has the right to reject the recommendations of the Upper house or Rajya Sabha.
The Finance Bill is introduced in Lok Sabha. Rajay Sabha can recommend amendments in the bill. However, the bill has to be passed by Parliament within 75 days of introduction.
The budget also proposed incentives for 30 lakh youth entering the job market, providing one month of PF contribution to address unemployment.
"The government is also working with the companies to provide ITI training to the youth in the state. She also said that one crore youths will directly benefit as the government will talk to over 500 companies to offer them job through CSR," Sitharaman said during her Budget speech on July 23.
The agricultural allocation in the budget 2024 is Rs 8,000 crore higher as compared to last year, the finance minister said in Parliament on July 30.
"The allocation to education has increased by 23% as compared to last year," she said. "Health and social welfare allocation increased by Rs 3,000 crore as compared to last year."
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