3 months ago
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Union Finance Minister Nirmala Sitharaman connected Sunday (February 1, 2026) announced an summation of astir 9% successful superior expenditure for the coming fiscal year, raising the allocation to ₹12.22 lakh crore successful the Union Budget 2026-27.
This is the “highest-ever superior expenditure and works retired to beryllium 4.4% of GDP”, according to Ms. Sitharaman’s code successful Parliament.
Mr. Sitharaman said the important summation successful superior expenditure allocation is aimed astatine continuing the momentum successful infrastructure improvement and supporting economical growth.
Capital expenditure oregon capex, is the wealth spent by the authorities connected improvement oregon to acquire, oregon to upgrade machinery oregon assets.
The superior expenditure for FY27 is 10 per cent higher than the Rs 11.11 lakh crore budgeted capex announced successful FY26.
“Public capex has accrued manifold from ₹2 lakh crore successful FY2014-15 to an allocation of ₹11.2 lakh crore successful BE 2025-26. In FY2026-27, I suggest to summation it to ₹12.2 lakh crore to proceed the momentum,” the Budget papers read.
The superior expenditure was 2.5% of GDP successful 2021-22 and astir 4% of GDP successful 2024-25. The government’s superior expenditure was ₹2.35 lakh crore successful 2015-16.
Capital payments dwell of superior expenditure connected acquisition of assets similar land, buildings, machinery, equipment, arsenic besides investments successful shares, etc., and loans and advances granted by the Central Government to the State and the Union Territory Governments, Government companies, Corporations and different parties.
With PTI inputs
