Why is it in the news?
- The Lok Sabha recently passed the Finance Bill, 2024 by a voice vote.
|About Finance Bill
· The Finance Bill is a crucial piece of legislation introduced annually in the Lok Sabha after the presentation of the Union Budget.
· It embodies the government’s proposals regarding taxation, spending, and other financial matters for the upcoming fiscal year.
· The Bill is categorized as a Money Bill under Article 110 of the Constitution, specifically dealing with taxation proposals.
· It plays a vital role in shaping the fiscal policy of the government and has far-reaching implications for the economy and taxpayers.
Process and Legislative Requirements:
· The Finance Bill can only be introduced in the Lok Sabha, but the Rajya Sabha can recommend amendments.
· It requires approval from both houses of Parliament before becoming law.
· The Bill must be passed within 75 days of its introduction.
· The Lok Sabha recently passed the Finance Bill, 2024, by a voice vote, marking a significant step in the budgetary process.
· Further, parliamentary approval for spending, as mandated by the Appropriation Bill, prevents unauthorized withdrawals from the Consolidated Fund of India.
· These legislative mechanisms help uphold democratic principles and ensure responsible governance.
Key Features of the 2024 Finance Bill
- Due to the upcoming general elections in April-May 2024, the Bill focuses on maintaining the existing tax structure for the financial year 2024-2025. This decision provides stability and avoids potential disruptions to the tax regime during the election period.
- The Bill includes minor tax reliefs targeted at specific sectors or categories of taxpayers. These reliefs may aim to incentivize certain behaviours or provide support to vulnerable groups within the taxpayer base.
- Measures to Boost Economic Growth: Infrastructure development initiatives to enhance connectivity and productivity; promotion of investments to stimulate economic activity and job creation; and reforms aimed at improving the ease of doing business, fostering entrepreneurship, and attracting investments.
- The government aims to reduce the fiscal deficit by proposing measures to control spending or increase revenue. Fiscal consolidation is crucial for maintaining macroeconomic stability and investor confidence, especially in the face of economic challenges or uncertainties.