Union Budget 2026–27 focuses on reform-led growth, raising capital expenditure to ₹12.2 lakh crore, boosting infrastructure investment, asset monetization via REITs, green freight corridors, and stronger Centre–state fiscal sharing.
Union Budget 2026 ₹12.2 Lakh Crore Capex Push to Power India’s Infrastructure Boom
Union Budget 2026 Highlights: Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026-27 in the Lok Sabha on Sunday, stating that the government has been focusing on reforms rather than rhetoric while navigating the Indian economy. The Finance Minister stated that the nation will continue to move forward in taking bold steps towards the achievement of a Viksit Bharat (Developed India).
The Finance Minister has pointed out the government’s concentration on infrastructure development. She stated,
“Public capital expenditure has risen significantly from ₹2 lakh crore in 2014-15 to an all-time high of ₹11.2 lakh crore in BE 2025-26. In the coming year, that is, financial year 2026-27, I propose to further increase it to ₹12.2 lakh crore to continue the momentum.”
▪️Public capital expenditure has increased manifold from ₹2 lakh crore in 2014–15 to an allocation of ₹11.2 lakh crore in 2025–26.
▪️In Financial Year 2026–27, I propose to increase it to ₹12.2 lakh crore to continue the momentum.
▪️To strengthen the confidence of private… pic.twitter.com/58oAvBHXNw— PIB India (@PIB_India) February 1, 2026
To encourage private developers and investors during the construction and infrastructure development stage, FM Sitharaman suggested the establishment of an Infrastructure Risk Guarantee Fund. This fund will offer a prudently measured public credit guarantee to lenders, thus minimizing risks and boosting confidence in long-term infrastructure investments.
The Finance Minister also emphasized the government’s intentions to monetize public assets more effectively. She stated, “Over the years, REITs have proved to be a successful tool for asset monetization. I propose to accelerate the recycling of substantial real estate assets of CPSEs through the formation of dedicated REITs.”
This measure is expected to raise additional funds for public sector enterprises. Encouraging Environmentally Sustainable Cargo Transport
To encourage environmentally sustainable logistics, FM Sitharaman announced the intention to improve cargo transport infrastructure. She said, “Develop new dedicated freight corridors between major industrial areas, from Dangkuni in the east to Surat in the west.” The above steps will help make cargo transport more efficient and environmentally sustainable.
The Finance Minister also tabled the report of the 16th Finance Commission, which outlines the guidelines for sharing tax revenues between the Centre and the states for the period 2026-2031. This report will help fiscal devolution and ensure resource distribution in the country.
This Union Budget is centered around infrastructure development, boosting the confidence of the private sector, green logistics, and financial reforms, further solidifying India’s economic development.
