New Delhi, Feb 1 : Finance Minister Nirmala Sitharaman announced on Sunday that the capital expenditure (capex) target will surge to ₹12.2 lakh crore for FY27—up from ₹11.2 lakh crore for the current fiscal—marking 4.4% of GDP, the highest ever.
Presenting the Union Budget 2026-27 in the Lok Sabha, she unveiled multiple measures to accelerate infrastructure development, with a focus on Tier-2 and Tier-3 cities.
“Budgeted capex of ₹12.2 lakh crore in FY27 is 4.4 per cent of GDP, highest-ever,” Sitharaman stated during the post-Budget press conference.
Key proposals include establishing a risk guarantee fund for the infrastructure sector, launching a scheme to enhance construction and infrastructure equipment manufacturing, and supporting professional bodies like ICAI and ICSI in offering short-term modular courses.
