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Parliament Budget Session 2026: IBC Amendments and CAPF Bill in Focus

During the Budget Session of Parliament on March 30, 2026, key legislative discussions took place in the Lok Sabha, including proposed amendments to the Insolvency and Bankruptcy Code (IBC) and a bill related to Central Armed Police Forces (CAPF). The government aimed to strengthen financial resolution mechanisms and improve administrative efficiency in paramilitary forces. These developments are important for economic reforms and internal security governance in India.

The Parliament Budget Session on March 30, 2026, included major discussions in the Lok Sabha. Two important topics were highlighted: amendments to the Insolvency and Bankruptcy Code (IBC) and a new bill related to Central Armed Police Forces (CAPFs).

The IBC, introduced in 2016, is a key economic reform. It helps resolve insolvency cases of companies within a fixed time. The proposed amendments aim to improve resolution speed, reduce delays, and strengthen creditor rights. This is important to manage Non-Performing Assets (NPAs) in banks.

The CAPF Bill focuses on improving administration, service conditions, and efficiency of forces like CRPF, BSF, ITBP, and CISF. These forces play a major role in internal security, border management, and disaster response. They function under the Ministry of Home Affairs.

The Budget Session is one of the most important parliamentary sessions. It discusses financial matters, policy reforms, and legislation. It is usually conducted in two phases.

Such reforms have long-term impact on economic stability and national security. Strengthening insolvency processes improves investor confidence, while better CAPF management enhances internal security.

🔑 Key Points

  • IBC introduced in 2016 for insolvency resolution
  • Amendments aim to reduce delays in resolution
  • CAPFs include CRPF, BSF, CISF, ITBP
  • CAPFs work under Ministry of Home Affairs
  • Budget Session is key for financial legislation
  • Lok Sabha plays major role in passing bills
  • IBC helps reduce NPAs in banking sector
  • CAPF reforms improve internal security efficiency

🧠 Concept Link (Very Important)

  • Insolvency means inability to repay debts
  • Bankruptcy is legal declaration of insolvency
  • NPAs are loans not repaid for 90 days
  • Parliament has two houses: Lok Sabha and Rajya Sabha
  • CAPFs are paramilitary forces under central government
  • Budget Session deals with Union Budget and finance bills

❓ Practice Questions (MCQ)

1.Insolvency and Bankruptcy Code was enacted in which year?
A) 2014
B) 2015
C) 2016
D) 2017

Answer: C

2.CAPFs function under which ministry?
A) Ministry of Defence
B) Ministry of Home Affairs
C) Ministry of Finance
D) Ministry of External Affairs

Answer: B

3.Which of the following is NOT a CAPF?
A) CRPF
B) BSF
C) Indian Army
D) CISF

Answer: C

4.What is the main aim of IBC?
A) Increase tax collection
B) Resolve insolvency cases
C) Promote exports
D) Control inflation

Answer: B

5.Budget Session of Parliament mainly deals with:
A) Elections
B) Judiciary reforms
C) Financial matters
D) Foreign policy

Answer: C

📜 Previous Year Question (Similar Type)

1. What is the primary objective of Insolvency and Bankruptcy Code (UPSC)?
Answer: Time-bound resolution of insolvency and bankruptcy cases

2. Which force is responsible for border security in India?
Answer: Border Security Force (BSF)

⚠️ Examiner Trap

Students often confuse CAPFs with Armed Forces. CAPFs are paramilitary forces, not part of the military.

🧭 Exam Tip

Focus on IBC provisions, CAPF roles, and differences between paramilitary and armed forces.

🏷️ Topics Covered

  • Insolvency and Bankruptcy Code
  • CAPF
  • Lok Sabha
  • Budget Session
  • NPAs
  • Ministry of Home Affairs
  • Economic Reforms
  • Internal Security