Union Budget 2026-27 Highlights Infrastructure Expansion
Finance Minister Nirmala Sitharaman on Sunday announced a significant increase in the government’s capital expenditure outlay, setting the target at ₹12.2 lakh crore for FY27. This marks a rise from the ₹11.2 lakh crore allocated for the current financial year, underlining the government’s continued emphasis on infrastructure-led growth.Presenting the Union Budget 2026-27 in the Lok Sabha, the Finance Minister said the higher capex allocation is aimed at accelerating project execution and strengthening economic momentum across sectors.
Focus on Tier-2 and Tier-3 Cities
The government reiterated its commitment to expanding infrastructure development beyond major urban centres. Sitharaman said infrastructure projects in Tier-2 and Tier-3 cities will continue to be a priority, with the objective of improving connectivity, urban facilities, and economic opportunities in emerging regions.Risk Guarantee Fund for Infrastructure Sector
As part of measures to encourage private participation and reduce financing risks, the government proposed the creation of a risk guarantee fund for the infrastructure sector. The initiative is intended to provide additional confidence to investors and lenders involved in large-scale infrastructure projects.Boost to Domestic Manufacturing of Equipment
The Budget also outlined plans to introduce a dedicated scheme to enhance construction and infrastructure equipment capabilities. The move is aimed at strengthening domestic manufacturing and supporting the broader infrastructure ecosystem through locally produced machinery and technology.Skill Development Through Professional Institutions
In a bid to align skills with evolving infrastructure needs, the government proposed supporting professional institutions such as Institute of Chartered Accountants of India and Institute of Company Secretaries of India. These bodies will be encouraged to design short-term modular courses to help build relevant expertise across sectors linked to infrastructure development.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.