Finance Minister Nirmala Sitharaman, during her reply to the discussion on the Finance Bill, 2025, and the Appropriation (No 3) Bill, 2025, in the Rajya Sabha, clarified that the recent amendments to pension rules are only a validation of existing policies and do not alter benefits for civil or defense pensioners.
She clarified that the 6th Central Pay Commission (CPC) had introduced a distinction between pensioners based on the 1 January 2006 cutoff, which was upheld by the Congress-led UPA government. However, the 7th CPC has since ensured parity between pre-2016 and post-2016 retirees. The upcoming 8th CPC, approved by Prime Minister Narendra Modi in January 2025, is expected to further revise salaries and benefits for government employees and pensioners.
Sitharaman also highlighted the government’s commitment to tax relief, revealing that the new income tax threshold has been set at ₹12 lakh, ensuring that middle-class taxpayers benefit from reduced financial burdens. She credited Prime Minister Modi for prioritizing tax reforms to honour the contributions of taxpayers.
Defending the success of Digital Public Infrastructure (DPI), the minister addressed concerns raised in 2017 about digital transactions being impractical in rural India. She pointed out that widespread digital adoption under Modi’s leadership has proven skeptics wrong, making financial transactions seamless even in remote areas.
On fiscal matters, Sitharaman assured that the government remains committed to bringing the fiscal deficit below 4.5% in the coming year. She also cited massive increases in state allocations, particularly for Kerala and Tamil Nadu, which have received 239% and 207% more funds, respectively, compared to the UPA era.
Reaffirming the government’s dedication to public welfare, she cited key schemes such as PM Awas Yojana, Jal Jeevan Mission, and Ayushman Bharat, emphasizing that "Achhe Din" (good days) have arrived for millions, except for those who associate governance with corruption.
The Rajya Sabha on Thursday returned the Finance Bill to Lok Sabha, which had already passed the Bill on 25 March. This brings the end to the Budget process for the current financial year.