Finance Minister Nirmala Sitharaman announced plans to present the Insolvency and Bankruptcy Code (IBC) Amendment Bill during the second half of the Budget session starting on March 9. Emphasizing the importance of disinvestment for revenue generation, she highlighted the government’s focus on divesting Central Public Sector Enterprises (CPSEs) in the future. Sitharaman also mentioned the need to expand the tax base to boost direct tax revenues.
The Finance Minister stressed the priority of divestment, citing the ongoing strategic disinvestment of IDBI Bank and the upcoming asset monetization plans. She expressed confidence in sustaining higher private consumption levels and indicated that the government’s focus on growth is evident from the fiscal year 2026-27 deficit target. The Budget proposes a significant increase in revenue estimates from miscellaneous capital receipts, primarily through the sale and monetization of government assets.
In the Budget for 2026-27, a substantial capital expenditure of Rs 12.2 lakh crore has been allocated to support key infrastructure projects aimed at stimulating economic growth and job creation. This allocation marks a notable increase from the previous fiscal year’s figures. Additionally, the debt-to-GDP ratio is projected to decrease slightly to 55.6% in 2026-27, compared to the previous year’s estimate.
