Govt hikes capex target to Rs 12.2 lakh crore for FY27

Last year, the Budget had estimated a capital expenditure target of Rs 11.21 lakh crore for the current fiscal. In FY2026-27, I propose to increase it to Rs 12.2 lakh crore to continue the momentum, she said, adding that this is 4.4 per cent of the GDP, the highest ever.

Sustaining focus on public expenditure, Finance Minister Nirmala Sitharaman on Sunday raised the capex target to Rs 12.2 lakh crore for FY27 from the revised estimate of Rs 10.95 lakh crore for the ongoing financial year. Last year, the Budget had estimated a capital expenditure target of Rs 11.21 lakh crore for the current fiscal. Public capex has increased manifold from Rs 2 lakh crore in FY2014-15 to an allocation of Rs 11.2 lakh crore in BE 2025-26, Sitharaman said while presenting the Union Budget for 2026-27 in the Lok Sabha. ''In FY2026-27, I propose to increase it to Rs 12.2 lakh crore to continue the momentum,'' she said, adding that this is 4.4 per cent of the GDP, the highest ever. The total expenditure in Budget Estimates (BE) 2026-27 is estimated at Rs 53,47,315 crore, of which total capital expenditure is Rs 12,21,821 crore and effective capital expenditure is Rs 17,14,523 crore. Sitharaman further said the government will continue to develop infrastructure in Tier-2 and Tier-3 cities. ''Budgeted capex of Rs 12.2 lakh crore in FY27 is 4.4 per cent of GDP, highest-ever,'' Sitharaman said at the post-Budget conference. The government also proposes to set up a risk guarantee fund for the infrastructure sector, she added. A scheme for the enhancement of construction and infrastructure equipment will be introduced to strengthen domestic manufacturing, Sitharaman said. The government also proposes to support professional institutions like ICAI and ICSI to design short-term modular courses, she added.

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