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Budget 2026: Rs 12.2 lakh crore capex boost for infrastructure in FY27

Union Budget 2026: Finance Minister Nirmala Sitharaman raised public capital expenditure (capex) to Rs 12.2 lakh crore for FY 2026–27.

2 min readUpdated: Feb 1, 2026 12:40 PM IST

Budget 2026: Capex target has been raised to Rs 12.2 lakh crore for FY27 (Image generated using AI)

Budget 2026 infrastructure spending: Finance Minister Nirmala Sitharaman raised public capital expenditure (capex) to Rs 12.2 lakh crore for FY 2026–27, up from Rs 11.2 lakh crore allocated for the ongoing financial year, to boost infrastructure in the country. “Public capex has increased manifold from ₹2 lakh crore in FY2014-15 to an allocation of ₹11.2 lakh crore in BE 2025-26. In FY2026-27, I propose to increase it to ₹12.2 lakh crore to continue the momentum,” she said.

The finance minister also announced the setting up of dedicated REITs to accelerate the monetisation and recycling of significant real estate assets of CPSEs. She further unveiled an Infrastructure Risk Guarantee Fund aimed at providing prudently calibrated partial credit guarantees to lenders, in a move to boost infrastructure financing.

“During this past decade our Government has undertaken several initiatives for large-scale enhancement of public infrastructure including through new financing instruments such as Infrastructure Investment Trusts (InVITs) and Real Estate Investment Trusts (REITs) and institutions like NIIF and NABFID. We shall continue to focus on developing infrastructure in cities with over 5 lakh population (Tier II and Tier III), which have expanded to become growth centres,” the FM said.

Also Read | Bullet train: FM Sitharaman proposes 7 high-speed rail corridors in Budget 2026 – check routes

Development of new DFC network

FM Sitharaman also proposed to develop a new Dedicated Freight Corridors ((DFC) connecting Dankuni in East to Surat in West. The DFC network provides the backbone that enables new-generation multimodal logistics. The finance minister also announced the development of 20 new waterways in the country.

“To promote environmentally sustainable movement of cargo, I propose to: a) Establish new Dedicated Freight Corridors connecting Dankuni in the East, to Surat in the West;

b) operationalise 20 new National Waterways (NW) over next 5 years, starting with NW-5 in Odisha to connect mineral rich areas of Talcher and Angul and industrial centres like Kalinga Nagar to the Ports of Paradeep and Dhamra,” Sitharaman said.

Anish Mondal

Anish Mondal is a journalist with over nine years of experience covering the railways and roadways. Currently a member of the Indianexpress.com editorial team, Anish specializes in high-impact sectors. Professional Journey Anish began his career at the public broadcaster Rajya Sabha Television (now Sansad TV), where he developed a foundational understanding of legislative processes and national governance. In 2018, he transitioned to digital financial journalism at FinancialExpress.com, spending nearly six years refining his expertise in market trends and corporate reporting. Before joining The Indian Express in 2025, he served as a key contributor at ETNowNews.com. Education & Expertise Anish’s reporting is backed by a rigorous academic background in communication and the humanities: Master of Journalism and Mass Communication (MJMC) – Apeejay Stya University Post Graduate Diploma in Journalism and Production (PGTVRJP) – Apeejay Institute of Mass Communication Bachelor of Arts (English Honours) – University of Calcutta Areas of Coverage Connectivity: Detailed reporting on the expansion of Indian Railways and National Highway networks. ... Read More

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