Will the IBC Amendment Bill Be Introduced in the 2nd Half of the Budget Session?
Synopsis
The government is gearing up to introduce the IBC Amendment Bill in the upcoming Budget session, highlighting a renewed focus on divestment and revenue generation. Finance Minister Nirmala Sitharaman emphasizes the importance of expanding the tax base and maintaining a growth-oriented fiscal approach.
Key Takeaways
The IBC Amendment Bill will be introduced in the Budget session starting March 9.
Increased focus on divestment of CPSEs is expected.
Capital expenditure for 2026-27 is set at Rs 12.2 lakh crore.
Revenue estimates from miscellaneous capital receipts are projected to rise significantly.
Debt-to-GDP ratio is forecasted to decrease slightly.
New Delhi, Feb 2 (NationPress) Finance Minister Nirmala Sitharaman announced on Monday that the government plans to present the Insolvency and Bankruptcy Code (IBC) Amendment Bill during the latter part of the Budget session, starting on March 9.
In her address to the press, following the unveiling of the transformative Budget for 2026-27, she stated that the trajectory of disinvestment is crucial for future revenue generation.
“There will be an increase in divestment activities. The divestment of Central Public Sector Enterprises (CPSEs) will be a key focus moving forward,” FM Sitharaman remarked.
Additionally, she mentioned the need to expand the tax base to enhance direct tax revenues.
“Nonetheless, divestment remains a top priority,” she emphasized, confirming that the strategic divestment of IDBI Bank is progressing and is expected to reach completion soon.
“The momentum of disinvestment and asset monetization will persist, promoting more public offerings of CPSEs. I am optimistic that increased private consumption will continue in the upcoming months, and our FY27 deficit target reflects the government's growth-focused agenda,” she told reporters.
The Budget outlines a revenue forecast from miscellaneous capital receipts at Rs 80,000 crore, significantly up from the revised estimate of Rs 33,837 crore for FY26. These receipts encompass revenue from both the sale and monetization of government assets.
Furthermore, the Finance Minister revealed a capital expenditure of Rs 12.2 lakh crore for the fiscal year 2026-27, aimed at enhancing major infrastructure projects to stimulate economic growth and job creation. This marks an increase of Rs 2.2 lakh crore compared to the previous fiscal year.
In addition, the debt-to-GDP ratio is projected to be 55.6% for 2026-27 (budget estimate), a slight decrease from 56.1% in the revised estimate for 2025-26.
Point of View
Which is vital for economic resilience. As always, staying informed on these developments is crucial for understanding the broader financial landscape.
NationPress
1 Jul 2026
Frequently Asked Questions
What is the Insolvency and Bankruptcy Code (IBC) Amendment Bill?
The IBC Amendment Bill aims to refine the existing insolvency framework in India, facilitating smoother resolution processes for distressed assets and strengthening the overall bankruptcy regime.
When will the Budget session begin?
The Budget session is set to commence on March 9.
What is the significance of divestment in the current economic context?
Divestment is crucial for increasing government revenues, reducing fiscal deficits, and promoting private sector participation in the economy.
How does the government plan to expand the tax base?
The government intends to broaden the tax base by enhancing compliance and reducing loopholes, which will lead to increased direct tax revenues.
What is the projected debt-to-GDP ratio for 2026-27?
The projected debt-to-GDP ratio for 2026-27 is 55.6%.
