New Delhi, March 31 – The government has notified the Finance Act 2026 to bring into effect the financial proposals of the Union Budget for 2026-27.
A gazette notification issued by the Ministry of Law and Justice stated: "The Finance Act 2026 received the assent of the President on March 30, 2026, and is hereby published for general information."
The Lok Sabha passed the Finance Bill 2026 on Friday, with the Rajya Sabha returning it to the Lok Sabha by voice vote, completing the legislative process to provide the legal backing for the proposals of the Union Budget 2026-27 to come into effect during the new financial year beginning on April 1.
The Lok Sabha passed the bill on March 25, along with 32 amendments. The Rajya Sabha returned the bill after a brief discussion, and after Finance Minister Nirmala Sitharaman responded to questions raised by Members of Parliament regarding her budget proposals.
The Union Budget 2026-27 outlines a total expenditure of Rs 53.47 lakh crore, an increase of 7.7 per cent over the current financial year ending on March 31.
The budget proposes a capital expenditure of Rs 12.2 lakh crore to boost major infrastructure projects for economic growth and job creation. This represents an increase of Rs 2.2 lakh crore over the corresponding figure of the previous fiscal year.
The Finance Minister said that an Infrastructure Risk Development Fund would be established to accelerate the development of major projects.
Sitharaman has projected a further reduction in the fiscal deficit to 4.3 per cent of GDP for 2026-27, as the government continues on the path of fiscal consolidation to ensure economic growth with stability.
She noted that this target reflects a balance between supporting economic momentum and maintaining stable public finances. The fiscal deficit represents the gap between the government's total expenditure and its total revenue.
The government plans to borrow a net amount of Rs 11.7 lakh crore in FY27 from dated securities to finance its fiscal deficit, while gross market borrowing is estimated at Rs 17.2 lakh crore, Sitharaman said.
The Finance Minister said the Budget proposes to provide a strong push to infrastructure, including highways, ports, railways, and power projects, to scale up manufacturing in 7 strategic sectors, and to create champion MSMEs.
She further stated that the government has maintained fiscal prudence and monetary stability while maintaining a strong focus on public investments.
The Finance Minister also said that India's debt-to-GDP ratio has fallen to 56.1 per cent in 2025-26 and will be further reduced in the 2026-27 Budget to 55.6 per cent.
The decline in the debt-to-GDP ratio will reduce the government's expenditure on interest payments, which will help to maintain a lower fiscal deficit and free up resources for development, Sitharaman said.