GS Paper - 3 (Economy)

The Lok Sabha approved the Finance Bill, which gives effect to new taxation, thus completing the Budgetary exercise for 2022-23 fiscal. The Finance Bill was approved by the Lower House after accepting 39 official amendments moved by the Finance Minister and rejecting the amendments proposed by the opposition by voice vote.

What

  1. Discussion on the Finance Bill, FM said India was probably the only country that did not resort to new taxes to fund the recovery of the economy hit by the COVID pandemic.
  2. According to an OECD report, as many as 32 countries have increased the tax rates after the pandemic.
  3. The Budget 2022-23 raised Capex by 35.4 per cent to Rs 7.5 lakh crore to continue the public investment-led recovery of the pandemic battered economy.
  4. The reduction in corporate tax has "helped the economy, government and companies, and we are seeing the progress".
  5. IFSC in Gujarat is making steady progress, and several global funds and insurance companies are setting up offices in the International Financial Services Centre at Gujarat International Finance Tec-City (GIFT).