Budget 2025: Centre seeks over ₹78,000 crore on securities trading levies next fiscal

Purchase and sale of securities like stocks and derivatives attract a securities transaction tax (STT) for both parties involved in the transaction. Given the boom in the country’s equity market and a surge in trading volumes, India has witnessed a sharp growth in mop-up from this levy, the Bloomberg report added.

For the next fiscal year starting April 1, the government is expecting to collect over ₹78,000 crore ($9 billion) through taxes on securities trading.

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This compares with a revised estimate of ₹550 billion collected this year and follows the government’s recent decision to raise STT on equity options and futures.

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Centre cuts borrowing target to ₹11.54 lakh crore

During her budget speech, finance minister Sitharaman announced that the government has reduced its borrowings estimate for next financial year to ₹11.54 lakh crore on net basis as it expects an improvement in tax collection.

The government has to borrow by issuing dated securities to meet its fiscal deficit target.

However, gross market borrowings have now been revised upward to ₹14.82 lakh crore from ₹14.01 lakh crore estimated for the current financial year.

“Coming to 2025-26, the total receipts other than borrowings and the total expenditure are estimated at ₹34.96 lakh crore and ₹50.65 lakh crore respectively. The net tax receipts are estimated at ₹28.37 lakh crore,” PTI quoted Sitharaman as saying.

“To finance the fiscal deficit, the net market borrowings from dated securities are estimated at ₹11.54 lakh crore. The balance financing is expected to come from small savings and other sources. The gross market borrowings are estimated at ₹14.82 lakh crore,” she said.

(With PTI, Bloomberg inputs)