New Delhi, March 31 (NationPress) The government has officially announced the Finance Act 2026, which will implement the financial initiatives outlined in the Union Budget for the fiscal year 2026-27.

A notification published by the Ministry of Law and Justice indicated: "The Finance Act 2026 has received the President's approval on March 30, 2026, and is now available for public knowledge."

On Friday, the Parliament passed the Finance Bill 2026, with the Rajya Sabha returning it to the Lok Sabha via a voice vote, successfully concluding the legislative process needed to activate the Union Budget 2026-27 proposals starting from the new financial year on April 1.

The Lok Sabha approved the bill on March 25, incorporating 32 amendments. The Rajya Sabha returned the bill after a concise discussion and Finance Minister Nirmala Sitharaman's responses to queries from Members of Parliament regarding her budget proposals.

The Union Budget 2026-27 has set a total expenditure at Rs 53.47 lakh crore, reflecting a 7.7 percent increase over the current financial year ending March 31.

This budget proposes a capital expenditure of Rs 12.2 lakh crore aimed at enhancing major infrastructure projects to spur economic growth and job creation. This marks an increase of Rs 2.2 lakh crore compared to the previous fiscal year's figures.

The Finance Minister announced the establishment of an Infrastructure Risk Development Fund to expedite the progress of significant projects.

Sitharaman has forecasted a further reduction in the fiscal deficit to 4.3 percent of GDP for 2026-27, as the government continues its commitment to fiscal consolidation, balancing economic growth with stability.

She emphasized that this target achieves a balance between fostering economic activity and maintaining stable public finances. The fiscal deficit denotes the discrepancy between the government’s total expenditure and its total revenue.

The government plans to undertake net borrowing of Rs 11.7 lakh crore in FY27 through dated securities to bridge its fiscal deficit, while the gross market borrowing is estimated at Rs 17.2 lakh crore, according to Sitharaman.

The Finance Minister outlined that the Budget aims to provide a significant boost to infrastructure, encompassing highways, ports, railways, and power projects, while also enhancing manufacturing in seven strategic sectors and nurturing champion MSMEs.

Furthermore, she stated that the government has upheld fiscal prudence and monetary stability, all while prioritizing public investments.

In addition, the Finance Minister noted that India’s debt-to-GDP ratio has decreased to 56.1 percent in 2025-26 and is projected to decline further in the Budget for 2026-27 to 55.6 percent.

This reduction in the debt-to-GDP ratio will lessen the government's interest payment obligations, thereby contributing to a lower fiscal deficit and freeing up resources for development, according to Sitharaman.