Finance Bill 2026 Passed in Lok Sabha: Key Highlights and Fiscal Targets

Union Budget 2026–27: Finance Bill Approved with Amendments in Lok Sabha

The Lok Sabha has passed the Finance Bill 2026 through a voice vote, approving government amendments while rejecting Opposition proposals. The Bill will now be taken up by the Rajya Sabha, marking the final stage of the Union Budget 2026–27 process.

Key Budget Provisions and Fiscal Targets

The Union Budget 2026–27 proposes a total expenditure of ₹53.47 lakh crore, reflecting a 7.7% rise over the previous year. The fiscal deficit is estimated at 4.3% of GDP, slightly lower than the revised 4.4% for FY26. The government aims to balance fiscal discipline with sustained investment in infrastructure and economic growth.

Government’s Defence on Fiscal Management

Finance Minister Nirmala Sitharaman defended the government’s fiscal strategy, noting a reduction in fiscal deficit from 9.3% during the pandemic period to current levels. She also compared past fiscal practices, arguing that earlier approaches masked liabilities by transferring them to public sector entities.

Oil Bonds and Debt Repayment Issue

The government highlighted its efforts to repay liabilities arising from oil bonds issued in earlier years. An inherited debt of ₹1.3 lakh crore has seen repayments of about ₹1.43 lakh crore between 2014 and 2024, including ₹44,650 crore in principal. These repayments, according to the government, have influenced available fiscal space for development.

Debate on Debt and Economic Growth

Addressing concerns on rising debt, the government emphasised the importance of evaluating debt relative to GDP growth. India’s nominal GDP has expanded significantly over the past decade, supporting fiscal sustainability. The debate also included discussions on welfare policies, GST reforms and centre-state financial relations.

Exam-Focused Points

• Bill: Finance Bill 2026 (passed in Lok Sabha)

• Expenditure: ₹53.47 lakh crore (Budget 2026–27)

• Fiscal deficit: 4.3% of GDP (FY27 target)

• Minister: Nirmala Sitharaman (Finance Minister)

• Oil bonds: Liabilities repaid post-2014

• Process: Final approval pending in Rajya Sabha