The Lok Sabha approved the Finance Bill 2026 by voice vote on March 25, 2026, incorporating 32 government amendments proposed by Finance Minister Nirmala Sitharaman. It now awaits Rajya Sabha consideration to finalize the Union Budget 2026-27 process.
Budget Highlights
The bill supports a total expenditure of ₹53.47 lakh crore, up 7.7% from the current fiscal ending March 31. Capital expenditure stands at ₹12.2 lakh crore, with gross tax revenue projected at ₹44.04 lakh crore and gross borrowing at ₹17.2 lakh crore.
Key Principles and Reforms
Sitharaman emphasized trust-based tax administration, ease of living, MSME and farmer empowerment, global business hub status, and trade facilitation. Key changes include a 12% surcharge on capital gains from share buybacks, replacing prior dividend tax.
Political Context
The minister criticized opposition for misleading the public amid reforms driven by conviction. No new tax hikes were introduced, focusing on fiscal consolidation with a 4.3% GDP deficit target.
