Lok Sabha passes Finance Bill 2026 with 32 government amendments

Pic/PTI

The Lok Sabha on Wednesday passed the Finance Bill 2026, incorporating 32 government amendments, marking a key milestone in the approval of the Union Budget for the financial year 2026-27, reported news agency PTI.

With this, the Lower House has completed its part of the budgetary process, and the Bill will now be taken up by the Rajya Sabha for consideration and approval.

Budget Approval Process Moves to Rajya Sabha

The passage of the Finance Bill in the Lok Sabha is a crucial step in finalising the Union Budget. Once cleared by the Rajya Sabha, the budgetary process for 2026-27 will be formally completed, reported PTI.

The Bill is aimed at implementing the government's financial proposals, including taxation measures and fiscal policies for the upcoming financial year.

Total Expenditure Pegged at Rs 53.47 Lakh Crore

The Union Budget 2026-27 proposes a total expenditure of Rs 53.47 lakh crore, reflecting an increase of 7.7 per cent over the current financial year ending March 31, reported PTI.

The budget outlines the government's spending priorities across sectors, with a continued focus on infrastructure, welfare, and economic growth.

Capital Expenditure Set at Rs 12.2 Lakh Crore

A significant portion of the budget has been allocated for capital expenditure, estimated at Rs 12.2 lakh crore for the next fiscal year, reported PTI.

This investment is expected to support infrastructure development, boost economic activity, and create employment opportunities.

Revenue and Borrowing Projections

The government has projected gross tax revenue at Rs 44.04 lakh crore for FY27. To meet expenditure requirements, gross borrowing is estimated at Rs 17.2 lakh crore, reported PTI.

These figures reflect the government's strategy to balance growth-oriented spending with fiscal discipline.

Fiscal Deficit Target Reduced to 4.3 per cent

The fiscal deficit for the upcoming financial year has been pegged at 4.3 per cent of GDP, slightly lower than the revised estimate of 4.4 per cent for the current fiscal, reported PTI.

This indicates the government's continued commitment to fiscal consolidation while maintaining investment momentum.

Key Legislation Also on Agenda

In addition to the Finance Bill, the government is expected to introduce the Insolvency and Bankruptcy Code Amendment Bill 2025 in the Lok Sabha for consideration and passage.

The proposed amendments aim to strengthen the insolvency resolution framework and improve ease of doing business in the country.

Parliament Continues Legislative Business

The Lok Sabha proceedings also included Question Hour, tabling of official documents, and presentation of committee reports. Pending government business from previous sittings is expected to be taken up in subsequent discussions.

(With inputs from PTI)