New Delhi, March 31 (IANS). The government has notified the Finance Act 2026 to implement the financial proposals of the Union Budget 2026-27.
“The Finance Act 2026 received the assent of the President on March 30, 2026 and is published for general information,” a gazette notification issued by the Ministry of Law and Justice said.
Parliament on Friday approved the Finance Bill 2026 and the Rajya Sabha sent it back to the Lok Sabha by voice vote. With this the legislative process was completed and the proposals of the Union Budget 2026-27 got legal recognition, which will come into effect in the new financial year starting from April 1.
The Lok Sabha had passed the bill with 32 amendments on March 25. Rajya Sabha had sent back the bill after a brief discussion and Finance Minister Nirmala Sitharaman answering questions raised by MPs on the budget proposals.
A total expenditure of Rs 53.47 lakh crore has been proposed in the Union Budget 2026-27, which is 7.7 per cent higher than the current financial year ended March 31.
The budget proposes capital expenditure of Rs 12.2 lakh crore to promote large infrastructure projects to grow the economy and create employment. This represents an increase of Rs 2.2 lakh crore compared to the same period in the last financial year.
The Finance Minister said that an Infrastructure Risk Development Fund will be set up to accelerate the development of large projects.
The Finance Minister has projected fiscal deficit to be reduced to 4.3 per cent of GDP for 2026-27 in the Budget, as the government continues on the path of fiscal consolidation to ensure stable economic growth.
He said this target reflects a balance between maintaining economic momentum and keeping public finances stable. Fiscal deficit is the difference between the total expenditure and total revenue of the government.
Sitharaman said the government will borrow net Rs 11.7 lakh crore from fixed securities to finance its fiscal deficit in FY2027, while gross market borrowing is pegged at Rs 17.2 lakh crore.
The Finance Minister said the Budget proposes to strengthen infrastructure including highways, ports, railways and power projects, boost manufacturing in 7 strategic sectors and develop leading small and medium enterprises (MSMEs).
He further said that the government has maintained fiscal prudence and monetary stability with a strong emphasis on public investment.
The Finance Minister also said that India’s debt-to-GDP ratio has declined to 56.1 per cent in 2025-26 and will be further reduced to 55.6 per cent in Budget 2026-27.
Sitharaman said a decline in the debt-GDP ratio would reduce the government’s expenditure on interest payments, which would help keep the fiscal deficit low and free up resources for development.
–IANS
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