What to Expect from Finance Minister Nirmala Sitharaman's Upcoming Legislative Proposals
Key Legislative Proposals in Parliament
New Delhi: On Monday, Finance Minister Nirmala Sitharaman is poised to present two significant bills in Parliament: the Finance Bill, 2026, and the Corporate Laws (Amendment) Bill, 2026.
The Finance Bill, 2026, is designed to implement the Central Government's financial proposals for the fiscal year 2026–2027. The Finance Minister will advocate for the bill's consideration and aim for its approval.
This initiative represents a crucial move towards executing the government's budgetary strategies and economic policies for the forthcoming year.
Additionally, the Finance Minister is expected to introduce a bill in the Lok Sabha aimed at amending essential corporate laws, as outlined in the House agenda.
The Corporate Laws (Amendment) Bill, 2026, proposes modifications to the Limited Liability Partnership Act of 2008 and the Companies Act of 2013.
The Companies Act regulates aspects such as incorporation, corporate governance, disclosures, and dissolution, while the LLP Act provides a more adaptable framework with limited liability for its partners.
In a related development, the Union Cabinet approved amendments to the Insolvency and Bankruptcy Code on March 10, paving the way for the introduction of the IBC Amendment Bill during the current parliamentary session.
These legislative updates stem from the recommendations of a Select Parliamentary Committee led by BJP MP Baijayant Panda, which was assigned to evaluate the existing bankruptcy framework. The committee completed its detailed report in December 2025, focusing on expediting the corporate resolution process.
To address the delays affecting the current system, the parliamentary committee has proposed stricter timelines for resolving bankruptcy cases. Alongside these deadlines, the committee has recommended enhancing the powers of the Committee of Creditors (CoC), enabling lenders to facilitate quicker and more effective resolutions.
Moreover, the proposed amendments aim to fill existing gaps in the code by introducing two significant structural frameworks. The select committee has suggested a dedicated mechanism for cross-border insolvency to better manage distressed companies with international assets and foreign creditors.