Rajya Sabha Returns Key Bills for 2024-2025 After Finance Minister's Rebuttal to Opposition Criticisms
On Thursday, the Rajya Sabha returned the Appropriation (No. 2) Bill, 2024, the Jammu and Kashmir Appropriation (No. 3) Bill, 2024, and the Finance (No. 2) Bill, 2024, following a vigorous debate over the Budget. The Bills, which had been passed by the Lok Sabha the previous day, were addressed by Finance Minister Nirmala Sitharaman in her response to the Opposition's criticisms.
In her address, Sitharaman defended the Budget against claims that it was detrimental to the middle class. She highlighted the government's efforts to reduce the financial burden on middle-income households. Sitharaman pointed out that this year's effective capital expenditure would reach ₹15.02 lakh crore, reflecting an 18% increase from the previous fiscal year. She attributed this rise in capital spending to positive effects on private investment, consumption, and exports.
The Finance Minister also noted that the central government was supporting states with 50-year interest-free loans, which might ultimately be converted into grants. Allocations to states for 2024-2025 are estimated at ₹22.91 lakh crore, marking an increase of ₹2.49 lakh crore from the last year.
Sitharaman underscored the government's commitment to simplifying taxation, contrasting it with the tax increases seen in many developed economies. She emphasized that despite the global economic pressures, India had managed to lessen the tax burden on its middle class.
Addressing demands from Opposition MPs to withdraw the 18% GST on health insurance premiums, Sitharaman questioned whether these issues had been raised with Finance Ministers from states who are members of the GST Council. She noted that the Finance Ministers from West Bengal and Tamil Nadu, among others, are involved in the Fitment Committee, and that all but one GST Council decision has been made by consensus.
Congress MP Jairam Ramesh criticized the sluggish growth in private investment and wages, despite increased government investment. CPI(M) MP John Brittas expressed concern over reduced funding for central sector schemes compared to increases for centrally-sponsored schemes. Aam Aadmi Party MP Sanjay Singh highlighted the waiver of ₹3.53 lakh crore in loans to companies, while advocating for the restoration of the previous Army recruitment system.
In response, Sitharaman challenged Singh on the alleged corruption related to Delhi's liquor policy, questioning the authenticity of the claims made by the Aam Aadmi Party against former Delhi Chief Minister Sheila Dikshit.
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