Published: 26 March 2026India Budget / OECDEconomy
Lok Sabha Passes Finance Bill 2026, Formalising Budget Proposals for FY 2026-27
AQuick answer
The Lok Sabha passed the Finance Bill 2026, implementing Union Budget 2026-27 provisions including a startup tax holiday threshold increase from ₹100 crore to ₹300 crore, with India projected as the fastest-growing major economy by OECD.
Key facts
Lok Sabha passed the Finance Bill 2026 via voice vote on March 25, 2026, formalising the Central Government's financial proposals for FY 2026-2027.
Turnover threshold for startups to qualify for tax holiday increased from ₹100 crore to ₹300 crore, effective FY 2026-27.
Budget provides for seamless cargo clearance through a single digital window by end of the financial year.
OECD pegged India's GDP growth at 7.6% for FY 2025-26, 6.1% for FY 2026-27, and 6.4% for FY 2027-28, making India the world's fastest-growing major economy.
Central Government notified retail inflation target will remain at 4% for April 2026 to March 2031, with upper and lower tolerance limits of 6% and 2%.
The Lok Sabha on March 25, 2026, passed the Finance Bill 2026 via a voice vote, formalising the Central Government's financial proposals for the fiscal year 2026-2027. The Bill includes key provisions from the Union Budget 2026-27, described as a 'Yuva Shakti-driven budget' focusing on the poor, underprivileged, and the disadvantaged.
Among the notable provisions, the turnover threshold for eligible startups to qualify for a tax holiday has been significantly increased from ₹100 crore to ₹300 crore, effective from FY 2026-27. The budget also provides for seamless cargo clearance through a single digital window by the end of the financial year.
The OECD has pegged India's GDP growth rate at 7.6% for FY 2025-26, 6.1% for FY 2026-27, and 6.4% for FY 2027-28, positioning India as the world's fastest-growing major economy. The Central Government has also formally notified that the retail inflation target will remain at 4% for the five-year period from April 2026 to March 2031, with upper and lower tolerance limits of 6% and 2% respectively.
PYQPrelims/PYQ angle
RAS 2024 Union Budget 2025-26 MSME measures — Both deal with Union Budget-driven economic reform measures; the Finance Bill 2026 formalises similar enterprise-support provisions including a raised startup turnover threshold.
Mains angle
Q: Examine the key provisions of the Finance Bill 2026 and India's medium-term growth outlook per OECD estimates.
Answer (50 words):
The Lok Sabha passed the Finance Bill 2026 on 25 March 2026, formalising Union Budget 2026-27. The startup tax-holiday threshold rose from ₹100 crore to ₹300 crore. OECD projects India's GDP at 7.6%, 6.1%, 6.4% for FY 2025-26, 2026-27, 2027-28; the retail inflation target remains 4% till 2031.
What key provisions does the Finance Bill 2026 passed by Lok Sabha include for startups?
The Finance Bill 2026, passed by Lok Sabha on **March 25, 2026**, significantly increased the **turnover threshold for startups to qualify for a tax holiday** from **₹100 crore to ₹300 crore**, effective from **FY 2026-27**. This triples the eligibility threshold, benefiting a much larger number of startups.
What is India's GDP growth rate projection by OECD for FY 2026-27 after the Finance Bill 2026?
The **OECD** projected India's GDP growth at **7.6% for FY 2025-26**, **6.1% for FY 2026-27**, and **6.4% for FY 2027-28**, positioning India as the **world's fastest-growing major economy**. The Finance Bill 2026 was passed via a **voice vote** on **March 25, 2026**.
What is the retail inflation target notified by the Central Government for 2026 to 2031?
The Central Government formally notified that the **retail inflation target will remain at 4%** for the five-year period from **April 2026 to March 2031**, with an **upper tolerance limit of 6%** and a **lower tolerance limit of 2%**. This target governs the RBI's monetary policy framework for the period.
What is the Finance Bill 2026 called and what is the Union Budget 2026-27 focused on?
The Union Budget 2026-27, whose proposals are formalised by the Finance Bill 2026, is described as a **'Yuva Shakti-driven budget'** focused on the **poor, underprivileged, and the disadvantaged**. The Lok Sabha passed the bill via a **voice vote on March 25, 2026**.
What provision does Finance Bill 2026 include for cargo clearance and trade facilitation?
The Finance Bill 2026 provides for **seamless cargo clearance through a single digital window** by the end of **FY 2026-27**. This initiative aims to simplify trade logistics, reduce dwell time at ports, and improve India's ease of doing business rankings by consolidating customs and clearance processes digitally.
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