Budget 2026 Infrastructure Investment: Record Rs 12.2 Lakh Crore Capital Expenditure for Economic Growth

Government announces record capital expenditure allocation of Rs 12.2 lakh crore for FY 2026-27 representing 9% increase from previous year's Rs 11.2 lakh crore demonstrating infrastructure-first strategy for sustained economic growth. Effective capital expenditure reaches Rs 17.1 lakh crore including higher support to states reflecting comprehensive approach to infrastructure development across multiple sectors. Transport sector receives largest allocation with Rs 5.98 lakh crore followed by Energy sector with Rs 1.09 lakh crore and Urban Development with Rs 85,522 crore supporting multi-sectoral growth strategy. Government establishes Infrastructure Risk Guarantee Fund enabling CPSEs to scale up infrastructure projects through risk mitigation and attracting private sector participation in large-scale developments. Special Assistance to States for Capital Investment Scheme allocates Rs 2 lakh crore supporting state-level infrastructure creation recognizing states as key infrastructure builders accelerating regional development. Budget announces setting up dedicated REITs for Central Public Sector Enterprises accelerating recycling of significant real estate assets and unlocking value from existing infrastructure without increasing debt burden. National waterways expansion includes operationalizing 20 new waterways linking mineral-rich belts industrial clusters and ports while establishing ship repair ecosystem for inland waterways reducing vessel downtime. Railway infrastructure receives significant focus with new rail corridors freight lines and modernization initiatives supporting logistics efficiency and reducing transportation costs for industrial sectors. Urban infrastructure development emphasizes smart cities plug-and-play industrial facilities and modern utilities with government pushing cities towards bond markets for sustainable financing mechanisms. Infrastructure investment strategy aims to support 7% plus GDP growth over long term without compromising fiscal discipline maintaining public debt targets at 50% of GDP by 2030.