India's Union Budget 2026-27: Rs 12.2 Trillion Boost for Infrastructure
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, recently tabled the Union Budget 2026-27 in Parliament, outlining a comprehensive roadmap aimed at fostering economic growth, enhancing people's capacities, and ensuring inclusive development across various regions and sectors. The budget is a strategic document that underscores the government's commitment to building a robust and resilient economy.
The Budget estimates non-debt receipts at Rs 36.5 lakh crore and total expenditure at Rs 53.5 lakh crore, with a particular emphasis on capital expenditure. The government has proposed to increase public capital expenditure to Rs 12.2 lakh crore in FY27, a significant boost from the previous year. This substantial investment in infrastructure is expected to drive economic growth, create jobs, and improve the quality of life for millions of Indians.
One of the key highlights of the Budget is the focus on asset monetization through Real Estate Investment Trusts (REITs) for Central Public Sector Enterprises (CPSEs)-owned real estate. This move is designed to unlock the value of underutilized assets and generate additional revenue for the government. The government plans to use the proceeds from these REITs to fund further infrastructure projects, creating a virtuous cycle of investment and development.
Mumbai, one of India's most populous and economically significant cities, is set to benefit from several ambitious underground road projects. These projects are expected to ease traffic congestion, reduce travel time, and improve the overall infrastructure of the city. The government's commitment to these projects underscores its determination to modernize urban infrastructure and enhance the livability of major metropolitan areas.
The fiscal deficit for the upcoming fiscal year is pegged at 4.3 per cent of GDP, a figure that strikes a balance between fiscal prudence and the need for robust public spending. The government has also outlined various measures to ensure that the benefits of economic growth are shared equitably across different segments of society. These measures include investments in education, healthcare, and rural development, which are crucial for building a skilled workforce and reducing regional disparities.
In addition to infrastructure, the Budget also emphasizes the importance of digital transformation and innovation. The government has allocated funds for the development of smart cities, the expansion of broadband connectivity, and the promotion of research and development in emerging technologies. These initiatives are expected to position India as a global leader in the digital economy and attract foreign investment.
The Union Budget 2026-27 is a forward-looking document that aims to lay the foundation for a prosperous and inclusive India. By prioritizing infrastructure, education, and innovation, the government is taking significant steps to ensure that the country is well-prepared to meet the challenges of the future and seize new opportunities.
Overall, the Budget represents a well-rounded approach to economic development, balancing the need for immediate growth with long-term sustainability. The government's focus on infrastructure, asset monetization, and digital transformation is expected to drive economic growth, create jobs, and improve the quality of life for all Indians.
