New Delhi: The Lok Sabha has officially passed the Appropriation Bill under the title Appropriation (No. 3) Bill, 2026.
Union Finance Minister Nirmala Sitharaman moved the legislation in the House. Specifically, the bill authorises the appropriation of funds from the Consolidated Fund of India to cover excess spending incurred during the financial year ended March 31, 2023. The government sought over ₹54,000 crore to settle these excess expenditures, allocating the entire amount toward sovereign debt repayment.
[FY 2022-23 Excess Expenditure] ──▶ Authorises ₹54,000 Crore Drawdown
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└─▶ Direct Allocation to Sovereign Debt Repayment
Easing Tax Rules to Attract Foreign Data Centres and AI Infrastructure
Earlier during the session, Finance Minister Sitharaman introduced the Taxation and Other Laws (Amendment) Bill, 2026.
This comprehensive legislation amends the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026. Concurrently, she laid an explanatory statement detailing the necessity for the immediate promulgation of the Income-tax (Amendment) Ordinance, 2026.
Key Reform Measures in the Taxation Amendment Bill:
Foreign Cloud Incentives: Removes complex multi-layered notifications for foreign cloud operators.
Flexible Operational Models: Permits Indian data centres to operate under leased arrangements.
AI Infrastructure Vision: Accelerates investments into large-scale AI data cities.
Finance Ministry sources confirmed that the Appropriation Bill aims to transform India into a predictable destination for foreign capital. By removing cumbersome approval layers, the government is incentivising global tech firms to build data processing infrastructure locally.
Committee Reports Tabled as House Adjourns
In addition to financial legislation, members presented several key parliamentary reports to the House.
[Public Accounts Committee] ──▶ Tabled Official Governance Report
[Committee on Government Assurance] ──▶ Presented Status Updates
[Standing Committee on Housing] ──▶ Submitted Urban Development Review
The House received reports from the Public Accounts Committee, the Committee on Government Assurance, and the Standing Committee on Housing and Urban Affairs. Following the passage of the Appropriation (No. 3) Bill, 2026, Deputy Chairman Harivansh adjourned the proceedings.
Key Parliamentary Legislative Measures
| Legislative / Committee Action | Key Statutory Provisions | Operational Objective | Economic & Governance Impact |
| Appropriation (No. 3) Bill, 2026 | Drawdown from Consolidated Fund | Authorises ₹54,000 crore excess spending. | Settles historical debt repayment obligations. |
| Taxation Amendment Bill, 2026 | Amends Income-tax & Settlement Acts | Replaces June 2026 Tax Ordinance. | Eases FDI norms for data centres and cloud firms. |
| Data Centre Leasing Reforms | Removes rigid direct-ownership rules | Allows leased data centre operations. | Drives capital into Indian AI data cities. |
| Parliamentary Panel Reports | PAC, Housing & Assurance Submissions | Oversight on government delivery. | Enhances fiscal transparency and accountability. |
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