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Govt to Table IBC Amendment Bill, Boost Divestment in Budget Session

Finance Minister Nirmala Sitharaman announced the government will introduce the Insolvency and Bankruptcy Code Amendment Bill in the latter part of the Budget session starting March 9. She emphasized a significant ramp-up in divestment, particularly for Central Public Sector Enterprises, as a key revenue priority. The strategic disinvestment of IDBI Bank is reportedly on track for a swift conclusion. The budget also proposes a massive capital expenditure outlay of Rs 12.2 lakh crore to fuel infrastructure and job growth.

Key Points: IBC Amendment Bill, Major Divestment Plans Announced by FM

  • IBC Amendment Bill in 2nd half of Budget session
  • Aggressive divestment of CPSEs a priority
  • IDBI Bank strategic sale on track
  • Capex boosted to Rs 12.2 lakh crore for infrastructure
2 min read

IBC Amendment Bill in 2nd half of Budget session, a lot more divestment coming: FM

Finance Minister Nirmala Sitharaman announces IBC Amendment Bill and aggressive CPSE divestment strategy to boost revenue and growth.

"Going forward, there will be a lot more divestment. - Nirmala Sitharaman"

New Delhi, Feb 2

Finance Minister Nirmala Sitharaman on Monday said that the government is set to introduce the Insolvency and Bankruptcy Code Amendment Bill in the second half of the Budget session, beginning March 9.

Addressing a press briefing, a day after presenting the historic reform-oriented Budget 2026-27, she said that the pace and direction of disinvestment should set the tone for revenue generation in the coming years.

"Going forward, there will be a lot more divestment. Specifically, divestment of Central Public Sector Enterprises (CPSEs) will be seriously considered now onwards," FM Sitharaman noted.

She further added that she will have to work on broadening the tax base so that direct tax revenues grow.

"However, divestment is a priority," the Finance Minister noted, adding that the IDBI Bank strategic disinvestment is on track and is likely to be concluded soon.

"Pace of disinvestment and asset monetisation will continue, encouraging more public floating of CPSEs. I am confident higher private consumption will sustain in the coming months, and FY27 deficit target shows the government's priority is growth," she told reporters.

The Budget has proposed a revenue estimate from miscellaneous capital receipts at Rs 80,000 crore - sharply higher from the revised estimate of Rs 33,837 crore for FY26. Miscellaneous capital receipts include revenue generation through both the sale and monetisation of government assets.

The Finance Minister announced capital expenditure of Rs 12.2 lakh crore in the Budget for 2026-27, to boost big-ticket infrastructure projects for boosting growth and jobs in the economy. This represents an increase of 2.2 lakh crore over the corresponding figure of the previous fiscal year.

Meanwhile, the debt-to-GDP ratio is estimated to be 55.6 per cent of GDP in 2026-27 (budget estimate or BE), compared to 56.1 per cent of GDP in 2025-26 (revised estimate or RE).

- IANS

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Reader Comments

P
Priya S
Rs 12.2 lakh crore on capex is impressive! This will create so many jobs in construction and manufacturing. The infrastructure push is exactly what we need. But I hope the asset monetisation is done transparently. We don't want a fire sale of national assets. 🤞
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Rohit P
"Broadening the tax base" - this is code for coming after us salaried folks even more. We are already taxed to the max. What about bringing the huge informal sector and agriculture income into the net? That's where the real tax evasion is.
S
Sarah B
As an investor, I'm cautiously optimistic. Faster IBC resolutions and more CPSEs going public mean more investment opportunities in the market. The IDBI Bank disinvestment will be a big test case. Hope it gets done smoothly and sets a good precedent.
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Vikram M
The debt-to-GDP ratio is still too high. Selling family silver (disinvestment) to pay for daily expenses is not a sustainable model. The government needs to focus on boosting real economic activity and exports, not just selling off PSUs to meet short-term revenue targets.
M
Meera T
Good move overall. But what about the employees of these CPSEs being disinvested? There must be a solid plan for VRS or absorption. We cannot have a repeat of past disinvestment dramas where workers suffered. Jan kalyan should be at the center. 🙏

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