Budget 2026–27: Public Capex Gets Rs 12.2 Lakh Crore Boost In FY27

New Delhi, Feb 1 (KNN) Finance Minister Nirmala Sitharaman on Sunday proposed to raise capital expenditure (capex) for the financial year 2026-27 at Rs 12.2 lakh crore.

"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. In FY2026-27, I propose to increase it to Rs 12.2 lakh crore to continue the momentum," Sitharaman said while presenting the Budget 2026-27 in Lok Sabha.

The Finance Minister emphasised the government’s support for large-scale infrastructure development through instruments like Infrastructure Investment Trusts (InVITs), Real Estate Investment Trusts (REITs), and institutions such as the National Investment and Infrastructure Fund (NIIF) and NABFID.

Sitharaman said that the focus will now expand to cities with populations over 5 lakh, including Tier II and III urban centres, which have emerged as key growth hubs.

To support private developers and mitigate risks during the construction and development phase, the government plans to establish an Infrastructure Risk Guarantee Fund. This fund will offer carefully structured partial credit guarantees to lenders, aimed at strengthening investor confidence in infrastructure projects.

(KNN Bureau)