NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday said the Union Budget has taken several “facilitative” measures for the middle class and MSMEs, and the government is moving forward with reforms not out of compulsion, but with conviction and clarity.
Replying to the debate on Finance Bill 2026 in the Lok Sabha, Sitharaman said the fiscal deficit is projected to come down to 4.3 per cent of GDP in FY27, from 9.3 per cent in FY21, and the country’s debt-to-GDP ratio is on a declining path and is lower than most major economies.
The Lok Sabha passed the Finance Bill 2026, by a voice vote after including 32 government amendments.
The Finance Bill, 2026, Sitharaman said rests on five key principles -- trust-based tax administration; ease of living for citizens; empowering farmers, MSMEs and cooperatives; making India stronger global business hub; and seamless trade facilitation and customs reforms. Rejecting opposition charge that the middle class have been left out in the Budget for 2026-27 fiscal year, the minister listed out measures like reduction in TCS rate on payments made under Liberalised Remittance Scheme (LRS) for foreign education and medical treatment. Also, TCS on overseas tour packages have been slashed to 2 per cent from 20 per cent earlier.
She also said the Finance Bill provided for exempting customs duty on 17 critical drugs and duty-free import of medicines and personal use.
Besides, to make life easier for taxpayers, the facility to file updated I-T returns have been allowed even where reassessment proceedings have been initiated, and a foreign asset disclosure scheme for small taxpayers have been brought in. To reduce disputes at airports with customs officers, the Bill provides for rationalising tariffs on gifts and items
brought into India.