Tax policy change abolishes digital advertising tax and raises the income tax threshold, reshaping FY26 fiscal priorities.
Parliament finalised Budget FY26 enactment by returning the Finance Bill with 35 amendments and the Appropriation Bill, including an amendment abolishing the digital advertising tax and a move to raise the income tax threshold to exempt more taxpayers. The budgetary framework proposes higher total and capital expenditure, increased allocations for Centrally Sponsored and central sector schemes, larger transfers to states, projected gross tax revenue and borrowings, and a lower fiscal deficit supported by stated GDP and expenditure drivers such as interest payments and defence spending.

Supplementary demands for grant passed; CrPC amendment withdrawn due to BNSS and university amendment introduced.
The Assembly approved a second set of supplementary demands for grant via an Appropriation Bill presented by the finance minister to permit additional allocations. The Chief Minister announced withdrawal of the Code of Criminal Procedure (Amendment) Bill due to enactment of the Bharatiya Nagarik Suraksha Sanhita. The Education Minister introduced the Capital University (Amendment) Bill to allow affiliation in accordance with UGC guidelines, which the Speaker scheduled for discussion.

Capital expenditure increase drives infrastructure push under 'Viksit Delhi', funded by tax and non tax revenues and development fund.
The 2025-26 budget prioritises a substantial increase in capital expenditure to accelerate infrastructure under 'Viksit Delhi', funded through tax revenue, non tax revenue, central grants and other sources. The budget channels a majority of resources to schemes, programmes and projects while maintaining establishment and administration outlays. It projects a revenue surplus alongside a delineated fiscal deficit and establishes a Chief Minister Development Fund for targeted developmental allocations to complement existing initiatives.

Income tax rebate increase provides unprecedented tax relief and underpins revised personal income tax projections.
The Finance Bill 2025 increases the income tax rebate and adjusts thresholds for salaried taxpayers, provides marginal relief for incomes slightly above the rebate limit, projects personal income tax collections net of revenue foregone, implements customs tariff rationalisation to lower duties on inputs and enhance export competitiveness, abolishes the Equalisation Levy on online advertisements citing international uncertainty, conducts a targeted voluntary disclosure campaign securing revised returns and Schedule FA filings, and restores a prior method for fixing pensions to achieve parity between pensioners.

Passage of Finance Bill advances budget enactment and removes the digital advertising tax, moving the measure to the upper house.
Passage of the Finance Bill 2025 in the lower house finalises the Lok Sabha's role in the budgetary approval process and sends the amended Bill to the Rajya Sabha; a government amendment abolishes the digital tax on online advertisements and the Bill advances the mechanisms for enacting the Union Budget for 2025-26, which sets proposed totals for expenditure, capital outlay, revenue and borrowing and expands allocations for Centrally Sponsored Schemes, central sector schemes and transfers to states while projecting a narrower fiscal deficit.

Equalisation levy abolition removes the digital advertising tax, easing obligations and reducing compliance burdens for online advertisers.
Abolition of the Equalisation Levy on online advertisement services is proposed to take effect from April 1, 2025, removing the statutory 6% digital advertising charge by rendering the Finance Act, 2016 provision inapplicable on and after that date. The amendment lifts the specific tax burden on digital advertisers and platforms and is accompanied by related tax-law changes addressing offshore fund investments and revisions to search-and-seizure assessment rules, including articulation of Total Undisclosed Income.

GST complexity increases compliance burden, while the Finance Bill is criticised as a patchwork lacking coherent fiscal direction.
The Finance Bill is criticised as a patchwork lacking coherent fiscal direction, with the Goods and Services Tax described as the "most complex" tax owing to a multi-rate structure that raises compliance burdens. Comparisons to other jurisdictions with simpler or lower GST rates are used to argue inefficiency in revenue mobilisation. Government supporters defend the Bill as promoting growth and worker welfare, and clarify that alleged corporate loan write-offs do not amount to gratuitous transfers, with recoveries being pursued.

Equalisation Levy abolition on online ads proposed, paired with clarifying tax assessment and offshore investment amendments.
The government proposes abolishing the Equalisation Levy on online advertisement services via Finance Bill amendments, removing the digital tax retained since 2016 and aiming to address concerns over unilateral digital taxation and provide taxpayer certainty. The Bill also eases offshore fund investment compliance, revises search and seizure assessment procedures, and introduces the defined term Total Undisclosed Income to clarify that search and seizure proceedings target undisclosed income.

Employee regularisation: municipal budget provides funding to regularise 12,000 contractual staff despite contested House proceedings.
Allocation in the Municipal Corporation budget earmarks funds to regularise contractual employees by providing a dedicated budgetary provision to cover salaries for 12,000 temporary workers. The provision was adopted during a disputed House session that passed the Revised Estimates and new Budget Estimates amid protests, selective acceptance and rejection of cut motions affecting sanitation, school repairs, horticulture and festival support, and an increase in councillor development allocations reallocated from road maintenance funds.

State budget credibility questioned as revenue projections and promised welfare allocations face scrutiny over transparency and forecasting.
The state budget for fiscal 2025-26 sets aggregate outlays, separates revenue and capital expenditure estimates, proposes financing partly via open market loans, and earmarks allocations for party commitments; opposition critiques contest the budget's credibility by alleging misrepresentation of revenue estimates, lack of alignment between revenues and expenditures, and omission of promised welfare measures, raising governance and accountability concerns about forecasting methods and fulfilment of social guarantees.

State budget commitments fund election guarantees while outlining financing, liabilities and measures to contain off budget borrowings.
The Telangana 2025-26 budget proposes total expenditure of Rs 3,04,965 crore with revenue and capital components and allocates over Rs 56,000 crore for the six poll guarantees. Financing plans include open market borrowings, anticipated growth in own tax revenue, and measures to manage rising FRBM liabilities-projected to exceed Rs 5 lakh crore-by negotiating longer tenors and lower costs for off budget borrowings and restricting guarantees to PSUs with adequate cash flows.

Make in India strengthens manufacturing through production-linked incentives, prompting review of past free-trade agreements and budget approvals.
The government affirms Make in India as an actionable industrial policy supported by production-linked incentive schemes that have attracted investment and employment, contrasts this approach with earlier national manufacturing policy and hastily concluded free trade agreements now under review, and notes parliamentary approval of supplementary demands for grants and the Manipur budget alongside increased budgetary capital outlay and social sector allocations.

Supplementary demands for grants approved, enabling net additional government spending and a six month Manipur Vote on Account.
Parliament approved the second batch of supplementary demands for grants yielding a net additional central government spending requirement of Rs 51,462.86 crore, including a technical supplementary for debt repayment; the Rajya Sabha returned four appropriation bills. The Manipur Budget was presented as a six month Vote on Account seeking Rs 17,947 crore, creates a Rs 500 crore contingency corpus, and operates while Manipur is under President's Rule pursuant to Article 356.

State Own Tax Revenue growth drives budget projections while fiscal consolidation targets limit fiscal deficit and borrowing.
State Own Tax Revenue is projected to grow at 14.60% in 2025-26 with SOTR estimated at Rs 2,20,895 crore, comprising Commercial Taxes, Stamps and Registration, Motor Vehicle Taxes and State Excise; State Own Revenues are estimated to constitute 75.31% of Total Revenue Receipts in the 2025-26 Budget Estimates. The Budget attributes revenue growth to economic expansion, tax revision and improved collection efficiency while noting reduced central transfers and withheld grants; the Fiscal Deficit is estimated at 3% of GSDP and the Debt-to-GSDP ratio is projected to fall to 26.07% as part of a fiscal consolidation plan.

Budget utilisation target with emphasis on fiscal compliance and adherence to central banking debt limits, plus targeted tax relief.
The state government sets a budget utilisation objective for the next fiscal year while affirming compliance with central banking borrowing limits and monitoring the debt-GSDP ratio. The budget proposes no new general taxes but provides targeted tax exemptions and time-bound reliefs alongside direct cash transfers to support workers and a key sector, balancing these measures within a modest deficit and an emphasis on constrained borrowing and implementation of approved estimates.

Political solution: Opposition urges dialogue over force to resolve Manipur unrest and demands central accountability.
Opposition MPs in Parliament contended that peace in Manipur cannot be achieved by force and demanded a political solution through dialogue and greater central accountability. They criticised delayed senior-level visits and called for the Centre to address structural inequalities in resource allocation, insisting that the state's budget and fiscal support reflect its humanitarian and development needs. Treasury representatives defended the constitutional basis for President's Rule and central intervention.

Supplementary demands for grants authorize additional government spending and debt redemptions, plus a Manipur vote on account.
Supplementary Demands for Grants authorised a net additional central spending of Rs 51,462.86 crore in the current fiscal as part of a second batch whose gross additional spending exceeds Rs 6.78 lakh crore and is largely offset by about Rs 6.27 lakh crore of savings and receipts; the package includes a technical supplementary of about Rs 5.54 lakh crore for advance debt redemption aimed at lowering borrowing costs. Separately, a six month Vote on Account for Manipur seeks Rs 17,947 crore, with stated receipts and expenditure estimates and a Rs 500 crore contingency corpus.

Supplementary budget reallocates funds to debt repayment, power sector support, disaster relief, and social infrastructure needs.
Supplementary Demands for Grants for 2024-25 allocate additional funds prioritising repayment of Ways and Means Advances/Overdraft, power sector support including subsidies and loans to utilities, and transport subsidies with e-bus purchases. The package further funds pensions, healthcare infrastructure, water and sanitation, restoration of monsoon-damaged school buildings, grants to rural and urban local bodies, and infrastructure projects. Centrally sponsored allocations augment rural roads, disaster response, housing, MNREGA wages, urban development, health and nutrition, and compensation to dam oustees, while addressing pending liabilities and reconstruction needs.

Fiscal responsibility: Arunachal Pradesh budget projects controlled fiscal deficit aligning with FRBM targets while boosting capital expenditure.
The state budget for 2025-26 allocates an outlay of approximately thirty nine thousand eight hundred crores, increasing both revenue and capital expenditure and raising capital spending to create socially and economically productive assets. Organised around four pillars-investment in people, infrastructure, economy, and innovation-the budget prioritises poverty reduction, universal education, accessible healthcare, employment through skill development, greater economic inclusion of women, and agricultural enhancement. The fiscal deficit is presented as controlled and compliant with the state's fiscal responsibility framework while enabling higher capital outlays for inclusive development.

Tribal welfare funding expanded to integrate targeted village development, infrastructure and livelihood schemes under a five-year programme.
The Budget increases funding for tribal welfare and subsumes the Pradhan Mantri Adi Adarsh Gram Yojana into the Dharti Aabha Janjati Gram Utkarsh Abhiyan, a five-year programme to remedy education, health and employment infrastructure shortfalls, raise tribal incomes and transform targeted villages through centrally funded projects with specified state contributions and inter-ministerial coordination.