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Government notifies Finance Act 2026
Government notifies Finance Act 2026
The Parliament on Friday approved the Finance Bill 2026 with the Rajya Sabha returning it to the Lok Sabha by a voice vote, completing the legislative process to provide the legal backing for the proposals of the Union Budget 2026-27 to kick in during the new financial year beginning from April 1.
New Delhi: The government has notified the Finance Act 2026 to bring into effect the financial proposals of the Union Budget for 2026-27.
A gazette notification issued by the Ministry of Law and Justice stated: "The Finance Act 2026 received the assent of the President on March 30, 2026 and is hereby published for general information."
The Parliament on Friday approved the Finance Bill 2026 with the Rajya Sabha returning it to the Lok Sabha by a voice vote, completing the legislative process to provide the legal backing for the proposals of the Union Budget 2026-27 to kick in during the new financial year beginning from April 1.
The Lok Sabha passed the bill on March 25, along with 32 amendments. The Rajya Sabha returned the bill after a brief discussion, and Finance Minister Nirmala Sitharaman's reply to questions raised by Members of Parliament on her budget proposals.
The Union Budget 2026-27 outlined a total expenditure of Rs 53.47 lakh crore, an increase of 7.7 per cent over the current financial year ending on March 31.
The budget proposes a capital expenditure of Rs 12.2 lakh crore to boost big-ticket infrastructure projects for growth and jobs in the economy. This represents an increase of 2.2 lakh crore over the corresponding figure of the previous fiscal year.
The Finance Minister said that an Infrastructure Risk Development Fund would be set up to accelerate the development of big projects.
Sitharaman has projected a further reduction in the fiscal deficit to 4.3 per cent of GDP for 2026-27 as the government continues on the path of fiscal consolidation to ensure economic growth with stability.
She noted that the target reflects a balance between supporting economic momentum and keeping public finances stable. The fiscal deficit represents the gap between the government’s total expenditure and its total revenue.
The government would go for net borrowing of Rs 11.7 lakh crore in FY27 from dated securities to fund its fiscal deficit, while the gross market borrowing is pegged at Rs 17.2 lakh crore, Sitharaman said.
The Finance Minister said the Budget proposes to deliver a powerful push to infrastructure, including highways, ports, railways and power projects, scale up manufacturing in 7 strategic sectors and create champion MSMEs.
She further stated that the government has maintained fiscal prudence and monetary stability whilst maintaining a strong thrust on public investments
The Finance Minister also said that India’s debt:GDP ratio has come down to 56.1 per cent in 2025-26 and would be further reduced in the Budget for 2026-27 to 55.6 per cent.
The decline in the debt:GDP ratio will reduce the Government’s outgo on interest payments, which will help to keep a lower fiscal deficit and free up resources for development, Sitharaman said.
Source: ZeeNews
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