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Union Budget 2026: Which laws passed in Winter Session will have an effect on the Budget?

Union Budget 2026: Which laws passed in Winter Session will have an effect on the Budget?

These Bills include The Health Security and National Security Cess Bill, 2025 and The Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025. 

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Nirmala Sitharaman to present Union Budget 2026-27 on February 1Nirmala Sitharaman to present Union Budget 2026-27 on February 1
Business Today Desk
  • Jan 27, 2026,
  • Updated Jan 27, 2026 2:20 PM IST

As Union Finance Minister Nirmala Sitharaman is set to present her ninth consecutive Union Budget on February 1, an array of Bills passed in the Winter Session of Parliament are expected to have an impact on the upcoming Budget. These Bills include The Health Security and National Security Cess Bill, 2025 and The Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025. 

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The following laws passed in the Winter Session are expected to have a significant impact on Budget

Name of the Bill What it doesBudget impact
The Health Security and National Security Cess Bill, 2025
  • The bill introduced a special cess on goods like pan masala manufacturing machinery.
  • The proceeds raised will be earmarked specifically to be utilised in the realms of public health infrastructure and national security spending.
  • It creates a new revenue stream outside the regular tax structure as these funds go directly to the Consolidated Fund of India and support allocation for health and security. 
  • The Bill allows the government to allocate specific funds for pressing public services without drawing directly from general tax revenues. 
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025Passed by both Houses, this bill raises the foreign direct investment (FDI) limit in insurance companies from 74 per cent to 100 per cent with the intent to accelerate growth, enhance insurance penetration, and boost foreign capital inflows.
  • Though it would not lead to a direct increase in taxes, it would result in greater FDI, and a more competitive insurance sector may lead to higher corporate tax earnings. 
  • Improved regulation is expected to attract global insurance capital, leading to a potential hike in fees and financial sector activity that boosts tax receipts. 
The Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025
  • The Act replaces the existing MGNREGA framework.
  • It increases the guaranteed workdays from 100 to 125 per year and offers fixed, state-wise allocations.
  • Higher number of wage days and new infrastructure components imply higher spending in rural development budgets. 
  • With states now bearing some of the expenses, the burden on the Centre is lowered. 
  • The new model allows normative allocations, making rural employment outlays easier to plan and cap compared to MGNREGA.
The Central Excise (Amendment) Bill, 2025This Bill aims to update the existing legal framework for central excise, impacting revenue generation, especially for tobacco products, after the GST compensation cess expires.
  • It ensures that there is no abrupt loss of excise revenue from sin goods, stabilising receipts. 
  • The cess and excise duties will continue to fund general and earmarked expenditures. 
The Manipur Goods and Services Tax (Second Amendment) Bill, 2025It replaced an ordinance to align tax administration in the northeastern state.
  • This is a state GST law alignment and would not cost the Centre money. 
  • It ensures the continuity of GST collection in Manipur without new central subsidies. 
  • Better GST compliance may improve indirect tax inflows shared with the state government. 
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025The bill allows private and foreign participation in nuclear power generation, impacting capital investment and energy-related budgetary planning.
  • The Bill promotes investment into energy infrastructure, reducing capital burden on the government. 
  • It also causes minimal budgetary impact but there state support or subsidies could be allocated in the future for facilitating projects. 
The Appropriation (No.4) Bill, 2025It authorises the government to withdraw funds from the Consolidated Fund of India for ongoing government spending as approved in the Budget.

Without this, ministries and/or departments cannot legally spend. It ensures the interim release of budget funds while final budget approvals or adjustments take place. 

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It also manages cash flow for public services until the new Budget session finalises spending. 

 

Union Budget 2026 Finance Minister Nirmala Sitharaman is set to present her record 9th Union Budget on February 1, amid rising expectations from taxpayers and fresh global uncertainties. Renewed concerns over potential Trump-era tariff policies and their impact on Indian exports and growth add an external risk factor the Budget will have to navigate.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in

As Union Finance Minister Nirmala Sitharaman is set to present her ninth consecutive Union Budget on February 1, an array of Bills passed in the Winter Session of Parliament are expected to have an impact on the upcoming Budget. These Bills include The Health Security and National Security Cess Bill, 2025 and The Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025. 

Advertisement

Related Articles

The following laws passed in the Winter Session are expected to have a significant impact on Budget

Name of the Bill What it doesBudget impact
The Health Security and National Security Cess Bill, 2025
  • The bill introduced a special cess on goods like pan masala manufacturing machinery.
  • The proceeds raised will be earmarked specifically to be utilised in the realms of public health infrastructure and national security spending.
  • It creates a new revenue stream outside the regular tax structure as these funds go directly to the Consolidated Fund of India and support allocation for health and security. 
  • The Bill allows the government to allocate specific funds for pressing public services without drawing directly from general tax revenues. 
The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025Passed by both Houses, this bill raises the foreign direct investment (FDI) limit in insurance companies from 74 per cent to 100 per cent with the intent to accelerate growth, enhance insurance penetration, and boost foreign capital inflows.
  • Though it would not lead to a direct increase in taxes, it would result in greater FDI, and a more competitive insurance sector may lead to higher corporate tax earnings. 
  • Improved regulation is expected to attract global insurance capital, leading to a potential hike in fees and financial sector activity that boosts tax receipts. 
The Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025
  • The Act replaces the existing MGNREGA framework.
  • It increases the guaranteed workdays from 100 to 125 per year and offers fixed, state-wise allocations.
  • Higher number of wage days and new infrastructure components imply higher spending in rural development budgets. 
  • With states now bearing some of the expenses, the burden on the Centre is lowered. 
  • The new model allows normative allocations, making rural employment outlays easier to plan and cap compared to MGNREGA.
The Central Excise (Amendment) Bill, 2025This Bill aims to update the existing legal framework for central excise, impacting revenue generation, especially for tobacco products, after the GST compensation cess expires.
  • It ensures that there is no abrupt loss of excise revenue from sin goods, stabilising receipts. 
  • The cess and excise duties will continue to fund general and earmarked expenditures. 
The Manipur Goods and Services Tax (Second Amendment) Bill, 2025It replaced an ordinance to align tax administration in the northeastern state.
  • This is a state GST law alignment and would not cost the Centre money. 
  • It ensures the continuity of GST collection in Manipur without new central subsidies. 
  • Better GST compliance may improve indirect tax inflows shared with the state government. 
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025The bill allows private and foreign participation in nuclear power generation, impacting capital investment and energy-related budgetary planning.
  • The Bill promotes investment into energy infrastructure, reducing capital burden on the government. 
  • It also causes minimal budgetary impact but there state support or subsidies could be allocated in the future for facilitating projects. 
The Appropriation (No.4) Bill, 2025It authorises the government to withdraw funds from the Consolidated Fund of India for ongoing government spending as approved in the Budget.

Without this, ministries and/or departments cannot legally spend. It ensures the interim release of budget funds while final budget approvals or adjustments take place. 

Advertisement

It also manages cash flow for public services until the new Budget session finalises spending. 

 

Union Budget 2026 Finance Minister Nirmala Sitharaman is set to present her record 9th Union Budget on February 1, amid rising expectations from taxpayers and fresh global uncertainties. Renewed concerns over potential Trump-era tariff policies and their impact on Indian exports and growth add an external risk factor the Budget will have to navigate.
Track live Budget updates, breaking news, expert opinions and in-depth analysis only on BusinessToday.in
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