Finance Minister Nirmala Sitharaman on Sunday announced a record capital expenditure outlay of Rs 12.2 lakh crore for infrastructure development in the Union Budget 2026, underlining the government’s continued emphasis on investment-led growth. This marks the highest-ever allocation for capital spending by the Centre.
Presenting the Budget in Parliament, Sitharaman said infrastructure would remain a key driver for economic expansion, job creation and competitiveness, with enhanced public investment expected to catalyse private sector participation across sectors such as transport, logistics and urban development.
As part of the broader infrastructure push, the finance minister also unveiled plans to develop 20 new waterways over the next five years, aimed at strengthening inland water transport, reducing logistics costs and promoting greener modes of freight movement.
In a move to de-risk large projects and encourage long-term private capital, the government will also set up an ‘infrastructure risk guarantee’ fund. The proposed mechanism is expected to provide assurance against select project risks, thereby improving bankability and accelerating execution of critical infrastructure projects.
The announcements reinforce the Centre’s strategy of using sustained capital expenditure as a lever to support growth, even as global economic conditions remain uncertain. |
