New Delhi, March 27: Parliament has approved the Finance Bill 2026, with the Rajya Sabha returning it to the Lok Sabha by voice vote, completing the legislative process required to operationalise the Union Budget 2026-27 from April 1.
The Lok Sabha had earlier passed the bill on March 25 with 32 amendments. The Upper House cleared it following a brief discussion and responses from Nirmala Sitharaman on key budget proposals.
The Budget outlines a total expenditure of ₹53.47 lakh crore for FY27, marking a 7.7% increase over the current fiscal. Capital expenditure has been pegged at ₹12.2 lakh crore, reflecting a ₹2.2 lakh crore increase aimed at accelerating infrastructure-led growth and job creation.
A key initiative includes the proposed Infrastructure Risk Development Fund, intended to support execution of large-scale projects across sectors such as highways, ports, railways, and power.
On the fiscal front, the government has projected a fiscal deficit of 4.3% of GDP for FY27, continuing its consolidation roadmap. Net market borrowing is estimated at ₹11.7 lakh crore through dated securities, while gross borrowing is pegged at ₹17.2 lakh crore.
The Budget also focuses on scaling up manufacturing across seven strategic sectors and strengthening MSMEs to enhance industrial competitiveness.
Sitharaman highlighted improvements in macroeconomic indicators, noting that India’s debt-to-GDP ratio is expected to decline from 56.1% in FY26 to 55.6% in FY27. The reduction is expected to ease interest outgo, support fiscal stability, and create additional room for development expenditure.
Overall, the Finance Bill’s passage reinforces the government’s dual focus on sustaining economic growth through public investment while maintaining fiscal discipline.
