Parliament Budget Session: Congress Alleges Fund Blockade

The Parliament Budget Session resumed on Monday at 11 AM with active proceedings in both the Lok Sabha and Rajya Sabha. The session is witnessing intense political discussions, legislative action, and renewed confrontation between the government and Opposition parties.

One of the major highlights of the day is the introduction of the Corporate Laws (Amendment) Bill, 2026, which aims to simplify business regulations and reduce compliance burdens for companies, especially startups and small enterprises.

Congress Raises Allegations Over Fund Allocation to States

A major political flashpoint emerged as Congress leaders questioned the Centre over alleged restrictions in releasing funds to Opposition-ruled states.

Congress MP Manickam Tagore claimed that certain conditions imposed by the government are effectively limiting the flow of central funds to states like Kerala and Tamil Nadu. He pointed out a significant gap between allocated funds and actual disbursement.

According to the data highlighted during the session, Kerala’s total grants reportedly declined sharply from Rs 22,559 crore in 2021–22 to Rs 3,332 crore in 2025–26. Additionally, only a fraction of the allocated funds has been released.

Concerns were also raised about key sectors such as:

• Urban local bodies
• Healthcare services
• Disaster management

These sectors are reportedly facing partial or zero fund releases despite approvals.

The Opposition has demanded a clear explanation from the government regarding delays and conditions tied to fund distribution.

Government Moves Ahead with Corporate Law Reforms

The government is pushing forward with economic reforms through the Corporate Laws (Amendment) Bill, 2026, which was approved earlier this month.

The bill proposes:

• Decriminalisation of minor corporate offences
• Replacement of criminal penalties with civil penalties
• Reduced compliance requirements for businesses

The amendments will impact both the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. The objective is to improve ease of doing business and encourage entrepreneurship in India.

Finance Bill 2026-27 Set for Discussion

Finance Minister Nirmala Sitharaman is also expected to present the Finance Bill 2026-27 for consideration and passage in the Lok Sabha.

The bill will implement the government’s financial proposals for the upcoming fiscal year, along with amendments aimed at strengthening economic policies.

Tributes and Political Statements Mark the Session

During the proceedings, Lok Sabha Speaker Om Birla paid tribute to freedom fighters Bhagat Singh, Rajguru, and Sukhdev on Shaheed Diwas, acknowledging their contribution to India’s independence.

Meanwhile, BJP MP Hema Malini praised Prime Minister Narendra Modi, highlighting his leadership and calling his tenure remarkable.

Recent Developments in Parliament

Last week, several notable developments took place:

• Suspension of eight Opposition MPs was revoked
• Rajya Sabha bid farewell to 59 members from 20 states
• Prime Minister Narendra Modi addressed the House, appreciating outgoing members

These events set the tone for the ongoing Budget Session, which is expected to remain politically charged in the coming days.