Finance Bill 2026: The Lok Sabha, on Wednesday, passed the Finance Bill 2026, along with 32 government amendments. With the passage of the Bill, the lower House completed its part of the Budgetary approval process.
The Upper House, Rajya Sabha, will now consider the Bill. After the Rajya Sabha approves the Bill, the Budget process for 2026-27 will be complete.
Replying to the debate on Finance Bill 2026 in the Lok Sabha, Union Finance Minister Nirmala Sitharaman said India is riding on the reform express and that reforms are happening with conviction and clarity.
“India is moving forward with reform not out of compulsion, which is what has happened earlier, but out of conviction, with clarity, confidence and commitment,” the Finance Minister said.
FM Sitharaman further stated India is riding on the reform express under the leadership of PM Modi. She highlighted that the Finance Bill 2026–27 rests on five clear principles:
- A trust-based tax administration is being improved, reducing unnecessary hardship for honest taxpayers.
- Ease of living for common citizens and ease of doing business, ensuring that people are not burdened by compliances, permits, quotas, and licenses for legitimate activities.
- Empowering MSMEs, farmers, and cooperatives, which are at the heart of employment generation, production, and overall development, through measures that improve liquidity and reduce compliance burden.
- Making India a stronger global business hub by bringing clarity in taxation and supporting key sectors such as digital infrastructure, electronics manufacturing, marine products, leather, critical minerals, nuclear energy and more.
- Enabling seamless trade facilitation and bringing in customs reforms to simplify processes and improve efficiency in trade.
The Union Budget 2026-27 envisages a total expenditure of Rs 53.47 lakh crore, an increase of 7.7 per cent over the current fiscal ending March 31.
The total capital expenditure proposed for the next fiscal is Rs 12.2 lakh crore. It proposes a gross tax revenue collection of Rs 44.04 lakh crore and a gross borrowing of Rs 17.2 lakh crore.
The fiscal deficit for FY27 is projected at 4.3 per cent of GDP, lower than 4.4 per cent in the current fiscal.
(With inputs from agencies)
