Budget 2026: FM Sitharaman Boosts Capex to ₹12.2 Lakh Crore for FY27
Budget
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CNBC TV18•01-02-2026, 13:31
Budget 2026: FM Sitharaman Boosts Capex to ₹12.2 Lakh Crore for FY27
- •Finance Minister Nirmala Sitharaman announced a capital expenditure (capex) of ₹12.2 lakh crore for FY27, a 9% increase from FY26's revised estimate of ₹10.9 lakh crore.
- •The allocation underscores the government's commitment to infrastructure-led growth and public investment as a key economic driver.
- •Effective capital expenditure, including grants for capital asset creation, is projected to surge by 22.1% to ₹17.14 lakh crore in FY27.
- •Effective capex as a proportion of GDP is expected to rise from 3.9% in FY26 to 4.4% in FY27, aiming to attract broader investment.
- •CRISIL noted the increase is in line with expectations but highlights the need for accelerated private sector investments in infrastructure.
Why It Matters: FM Sitharaman's Budget 2026 significantly increases capital expenditure, signaling a strong focus on infrastructure and economic growth.
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