Parliament adjourned sine die as first tranche of 2026 Union Budget session concludes

India's Parliament was adjourned sine die on Friday, marking the end of the first tranche of the Union Budget 2026 session, with the next cycle of proceedings scheduled to commence in March.

The Budget session had begun on February 1, when the Finance Bill, 2026 was introduced, setting the legislative and fiscal agenda for the financial year.

On the eve of the final sitting of the first phase on February 12, Parliament also passed the Industrial Relations Code (Amendment) Bill, 2026 after approval from both Houses.

Union Budget 2026: Fiscal roadmap

The Union Budget for 2026–27 was presented in Parliament on February 1 by Finance Minister Nirmala Sitharaman, outlining the government’s projected revenues, expenditure plans and fiscal strategy for the coming financial year.

The annual financial statement projected non-debt receipts of about ₹36.5 lakh crore against total expenditure of roughly ₹53.5 lakh crore, with the fiscal deficit estimated near 4.3 per cent of GDP.

Capital expenditure remained a central pillar of the government’s growth strategy, with large allocations directed toward infrastructure creation and long-term investment to sustain economic expansion.

The Budget continued the broader fiscal-consolidation trajectory while attempting to balance development spending and macroeconomic stability.

Finance Bill 2026 introduced to operationalise tax proposals

Alongside the Budget presentation on February 1, the Finance Bill, 2026 was introduced in Parliament to give legal effect to the taxation and fiscal proposals announced for the financial year.

The legislation forms the statutory mechanism through which revenue measures contained in the annual financial statement are implemented.

The introduction of the Finance Bill marked the formal start of legislative scrutiny over the government’s tax framework, with both Houses expected to debate and approve provisions before the close of the Budget process.

Industrial Relations Code amendment clears Parliament

Parliament’s legislative work during the first phase also included passage of the Industrial Relations Code (Amendment) Bill, 2026, which seeks to remove ambiguity surrounding the repeal of earlier labour laws subsumed under the Industrial Relations Code, 2020.

The amendment was introduced by Labour Minister Mansukh Mandaviya and cleared during the ongoing Budget session.

The 2020 Code had replaced three major statutes governing trade unions, industrial employment and dispute resolution, and the amendment aims to ensure legal continuity while preventing future disputes over the validity of those repeals.

The government said clarifying provisions in Section 104 and a February 2026 notification establish that the repeal occurred by operation of law itself, eliminating potential legal complications.

Ruckus over US trade deal and Rahul Gandhi’s allegations

The Budget session’s first phase was also marked by sharp political confrontation, with opposition parties protesting a proposed U.S.–India trade framework and accusing the government of compromising domestic farmers and industry.

Demonstrations occurred both inside and outside Parliament, reflecting wider farmer-led concerns about possible import competition and rural income pressures.

Tensions spilled into parliamentary proceedings through repeated disruptions and exchanges involving opposition leader Rahul Gandhi, prompting procedural interventions by Speaker Om Birla as the House attempted to maintain order during debates linked to the trade deal and related allegations.