Parliament approves Finance Bill 2026

• Sachin Chawla
• 28 Mar 2026
• 126 Views

On 27 March 2026, the Parliament gave the greenlight to Finance Bill 2026, with the Rajya Sabha returning it to the Lok Sabha via a voice vote. This completed the legislative process necessary for implementing the proposals outlined in the Union Budget for the financial year 2026-27, which begins on April 1. The Lok Sabha passed the bill on 25 March 2026 along with 32 amendments. 

After a brief discussion, the Rajya Sabha subsequently returned the bill. During this discussion, Finance Minister Nirmala Sitharaman addressed questions raised by Members of Parliament regarding her budget proposals. The Union Budget for 2026-27 highlighted a total expenditure of Rs 53.47 lakh crore. This expenditure represents a 7.7 percent increase over the prevailing financial year, which ends soon on 31 March 2026.

In the budget, a capital expenditure of Rs. 12.2 lakh crore is proposed for big ticket infrastructure projects. This would boost growth as well as jobs in the economy. This reflects an increase of 2.2 lakh crore over the previous fiscal year’s corresponding figure. 

According to the Finance Minister, an Infrastructure Risk Development Fund would be established to speed up the big projects’ development. Additionally, she has projected a further decline in fiscal deficit to 4.3 per cent of GDP for 2026-27 as the government continues on the fiscal consolidation’s path to ensure economic growth along with stability. 

According to her, the target shows there is a balance between supporting economic momentum and maintaining stable public finances. The fiscal deficit measures the difference between our government's total expenditure and its total revenue. To fund this fiscal deficit, the government plans to undertake net borrowing of Rs 11.7 lakh crore in FY27 from dated securities. 

Additionally, gross market borrowing is expected to reach Rs 17.2 lakh crore. She further stated that the Budget of the government aims to provide a significant boost to infrastructure like highways, ports, railways and power projects. It also seeks to scale up manufacturing in seven strategic sectors and support MSMEs (Micro, Small and Medium Enterprises).

The Finance Minister also mentioned that our central government has maintained fiscal prudence and financial stability while placing a strong emphasis on public investment. Additionally, she stated that India’s debt-to-GDP ratio has decreased to 56.1 percent for the fiscal year 2025-26 and is expected to decline further to 55.6 percent in the Budget for 2026-27. This reduction in the debt-to-GDP ratio will lower the government's interest payment obligations and help to maintain a smaller fiscal deficit and free up resources for development, according to the Finance Minister.

Source: DD News