The Parliament on Friday passed the Finance Bill 2026, paving the way for the implementation of the Union Budget 2026-27 from April 1. The Rajya Sabha returned the bill to the Lok Sabha by a voice vote after a brief discussion, during which Finance Minister Nirmala Sitharaman addressed questions raised by members.
The Lok Sabha had cleared the bill on March 25, incorporating 32 amendments. With its approval, the budget proposals now have legal backing for execution in the new financial year.
The Union Budget 2026-27 outlines total expenditure of ₹53.47 lakh crore, a 7.7% rise over the current fiscal year. Capital expenditure is set at ₹12.2 lakh crore, aimed at accelerating infrastructure projects, generating employment, and supporting economic growth—up ₹2.2 lakh crore from the previous year.
To facilitate major infrastructure initiatives, an Infrastructure Risk Development Fund will be established. The fiscal deficit is projected to fall to 4.3% of GDP in 2026-27, balancing growth support with fiscal stability.
The government plans net borrowing of ₹11.7 lakh crore through dated securities to fund the deficit, with gross market borrowing estimated at ₹17.2 lakh crore.
The Finance Bill’s passage ensures that key budget measures, including infrastructure investment and fiscal consolidation, will be implemented smoothly at the start of the new fiscal year.
