Lok Sabha passes Finance Bill 2026, Sitharaman says India riding reforms express

The Lok Sabha on Wednesday approved the Finance Bill 2026 by voice vote, incorporating 32 government-proposed amendments. It will now be sent for consideration of the Rajya Sabha, and once the upper house returns the bill, the Union Budget will be considered as passed by Parliament.

The Union Budget for 2026-27 has proposed an aggregate expenditure of Rs 53.47 lakh crore, representing a 7.7 per cent rise, compared to the fiscal, which ends on March 31.

Capital expenditure has been pegged at Rs 12.2 lakh crore as the Finance Bill proposes a gross tax revenue collection of Rs 44.04 lakh crore and a gross borrowing of Rs 17.2 lakh crore.

Finance Minister Nirmala Sitharaman, while responding to the discussion on the Finance Bill in the Lok Sabha, said India is moving forward with reforms not out of compulsion, which is what had happened earlier, but out of conviction, with clarity, confidence and commitment.

She said the Finance Bill 2026-27 rests on five clear principles. This includes trust-based tax administration, improving the ease of living for the common citizens, empowering MSMEs, farmers and cooperatives, strengthening India as a global business hub and enabling seamless trade facilitation and customs reforms.

Sitharaman also underlined that the Finance Bill aims to improve liquidity and cut the compliance burden, adding that the bill focusses on ease of living and minimising the hardship of taxpayers.

Referring to the West Asia crisis and emerging challenges, the Finance Minister said that the government is taking steps to deal with the challenges and mitigating its impact. Sitharaman criticised the opposition, saying that instead of standing with the government, the Opposition is taking irresponsible steps and misleading the public.

The Finance Bill is a key legislative step that gives legal backing to the proposals announced in the Union Budget. It would bring into force changes in income tax rates, duties and other levies, directly affecting how much individuals and businesses pay to the exchequer.