Union Budget 2026 increases FY27 capital expenditure to ₹12.2 lakh crore, 4.4% of GDP
The Hindu
Union Budget 2026 boosts FY27 capital expenditure by 9% to ₹12.2 lakh crore, enhancing infrastructure and economic growth.
Union Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) announced an increase of about 9% in capital expenditure for the coming financial year, raising the allocation to ₹12.22 lakh crore in the Union Budget 2026-27.
This is the “highest-ever capital expenditure and works out to be 4.4% of GDP”, according to Ms. Sitharaman’s speech in Parliament.
Mr. Sitharaman said the significant increase in capital expenditure allocation is aimed at continuing the momentum in infrastructure development and supporting economic growth.
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Capital expenditure or capex, is the money spent by the government on development or to acquire, or to upgrade machinery or assets.
The capital expenditure for FY27 is 10 per cent higher than the Rs 11.11 lakh crore budgeted capex announced in FY26.
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