As India's Parliament commences its crucial budget session today, the spotlight firmly rests on the Finance Bill 2026, which will establish the income tax rates and customs duty structure for the upcoming financial year. However, according to three individuals familiar with the legislative agenda, the government has strategically lined up a series of significant reform bills for passage during this session, spanning critical sectors including education, bankruptcy resolution, motor vehicles, and agriculture.
Comprehensive Legislative Agenda Unveiled
The session was officially inaugurated with the President's address to both Houses of Parliament. Beyond the annual financial statement, the government is poised to advance substantial policy reforms through legislative action. One of the key bills expected to be moved is the Bankruptcy Code (Amendments) Bill, aimed at reforming the debt resolution framework. This legislation has already undergone review by a select committee of the Lok Sabha, indicating its priority status.
Motor Vehicles and Agricultural Reforms
In the transport sector, the government is anticipated to introduce the Motor Vehicles Amendment Bill 2026. This comprehensive legislation proposes over 60 amendments to the Motor Vehicle Act of 1988. The amendments are designed to enforce stricter safety norms, implement digital reforms, decriminalize minor offences, simplify legal definitions, clarify emission regulations, and harmonize Indian standards with global benchmarks.
Simultaneously, the agricultural sector is set for transformation with the Seed Bill, 2026. This bill seeks to replace the outdated Seeds Act of 1966 and the Seeds (Control) Order of 1983. Its objectives include aligning regulations with contemporary agricultural practices, accommodating technological advancements, and addressing the growing complexity of seed markets to protect farmers from economic losses due to substandard inputs.
Education Overhaul and Decriminalization Efforts
The education sector will witness significant developments as a joint parliamentary committee is scheduled to table its report on the Viksit Bharat Shiksha Adhishthan Bill, 2025. This legislation is intended to overhaul higher education in India. Additionally, another select committee will present its report on the Jan Vishwas (Amendment of Provisions) Bill, 2025, which aims to decriminalize a range of offences across various sectors. The government plans to consider these reports for potential modifications in the second part of the session following the recess.
Pending Legislation and Stakeholder Expectations
According to data from the Lok Sabha Secretariat, seven bills introduced earlier remain pending in the Lok Sabha, while as many as 19 bills are pending in the Rajya Sabha. This backlog underscores the legislative workload facing the current session.
Business stakeholders are particularly attentive to the tax reforms anticipated in the Finance Bill 2026. Experts highlight expectations for an overhaul of the dispute resolution mechanism under direct tax laws, including the introduction of mandatory timelines for appeal disposals. Revisions to the Safe Harbour Rules for multinational corporations and enhancements to the GST invoice management system are also among key expectations from Budget 2026.
Detailed Provisions of Key Bills
The proposed Seed Bill, 2026, aims to curb the sale of poor-quality, fake, and unauthorized seeds while ensuring farmers have access to high-quality, certified seeds. It emphasizes strengthening enforcement against substandard inputs, promoting climate-resilient varieties, and ensuring full traceability so farmers can identify the source and supplier of seeds.
The Motor Vehicles Amendment Bill, 2026, introduces several innovative measures. These include the introduction of vehicle-to-vehicle communication systems, mandatory installation of Advanced Driver Assistance Systems (ADAS), enhanced crash testing protocols, seatbelt reminders, and improved child safety measures. Notably, minor offences such as failure to carry documents will attract civil penalties instead of criminal charges, while serious violations will incur heavier fines and possible license suspension.
The road ministry asserts that these amendments are necessary to create a safer and more efficient transport system, address rising road fatalities, update outdated regulations, improve the insurance framework, promote digitalization for easier compliance, curb alleged corruption through streamlined processes, and regulate new-age players like cab aggregators.
As the budget session progresses, these reform bills represent the government's concerted effort to address pressing economic and social challenges through legislative action, setting the stage for significant policy shifts in the coming year.
