Lok Sabha Passes Finance Bill 2026 with Amendments

The Lok Sabha has passed the Finance Bill 2026 by a voice vote, approving 33 amendments proposed by the government and rejecting those moved by Opposition members. With this, the Bill moves to the Rajya Sabha for final approval, after which the Union Budget process for 2026–27 will be formally completed.

Key Budget Provisions and Fiscal Targets

The Union Budget 2026–27 outlines a total expenditure of ₹53.47 lakh crore, marking a 7.7% increase over the current financial year. The fiscal deficit for FY27 is projected at 4.3% of GDP, slightly lower than the revised estimate of 4.4% for FY26. The government aims to maintain fiscal consolidation while supporting economic growth and infrastructure development.

Government’s Defence on Fiscal Management

During the debate, Finance Minister Nirmala Sitharaman defended the government’s fiscal record, highlighting the reduction of fiscal deficit from 9.3% during the Covid-19 period to current levels. She contrasted this with the fiscal management during the 2008–09 global financial crisis, alleging that earlier figures understated the actual deficit by shifting liabilities to oil marketing companies.

Oil Bonds and Debt Repayment Issue

The Finance Minister emphasised that the current government has been repaying liabilities arising from oil bonds issued during the earlier regime. According to official data, a total outstanding debt of ₹1.3 lakh crore was inherited, with ₹1.43 lakh crore repaid between 2014 and 2024, including ₹44,650 crore as principal. She noted that these repayments have impacted available funds for developmental expenditure.

Important Facts for Exams

• Finance Bill is essential for implementing taxation proposals of the Union Budget.
• Fiscal deficit represents the gap between government expenditure and revenue.
• Oil bonds were issued to compensate oil companies without increasing fuel prices.
• Parliament approval is required for completion of Budget process.

Debate on Debt and Economic Growth

Addressing concerns on rising public debt, the government argued that debt must be viewed relative to GDP growth. India’s nominal GDP has increased significantly from ₹113 lakh crore in 2013–14 to ₹345 lakh crore in 2025–26. The debate also saw political exchanges over welfare schemes, GST reforms and implementation of central initiatives by states, reflecting broader disagreements on fiscal priorities and governance.