Union Finance Minister Nirmala Sitharaman on Sunday announced a sharp increase in the Centre’s capital expenditure outlay for the next financial year, raising it by around nine per cent to Rs 12.2 lakh crore in the Union Budget 2026.

Capex remains key policy lever amid global uncertainty

Presenting the Budget in Parliament, Sitharaman said the enhanced allocation is aimed at sustaining the pace of infrastructure creation and reinforcing economic growth at a time when global conditions remain uncertain. Capital expenditure has been one of the government’s primary policy levers over the past decade, helping drive demand, employment and private investment.