PM Narendra Modi Says FY27 Union Budget Prioritises Productive Spending, Infrastructure Push Over Populism

PM Narendra Modi Says FY27 Union Budget Prioritises Productive Spending, Infrastructure Push Over Populism​

New Delhi, February 15: Prime Minister Narendra Modi on Sunday said that productive spending remains a defining feature of his government’s policy framework, asserting that the recently unveiled Union Budget deliberately steers away from short term populist measures and instead concentrates on large scale infrastructure investment to generate jobs and sustain long term growth.

In an exclusive interview, the Prime Minister described the Budget for the fiscal year beginning April 1 as a natural progression in his government’s reform journey, aimed at addressing structural weaknesses and laying the groundwork for a developed India.

Budget Reflects Governance Priorities and Reform Momentum​

Modi said the latest Budget accurately reflects his government’s governance style and priorities. According to him, it marks a new stage in India’s economic transformation and provides renewed momentum to what he termed the “Reform Express.”

He stated that the Budget is designed to accelerate progress and prepare India’s youth for opportunities in a rapidly changing global landscape.

Citing findings from the pre Budget Economic Survey, he noted that capital accumulation, labour formalisation and digital public infrastructure have together enhanced India’s potential growth rate to 7 per cent.

Capital Expenditure at ₹12.2 Lakh Crore in FY27​

A central pillar of the FY27 Budget is a significant rise in capital expenditure to ₹12.2 lakh crore. Modi highlighted that this represents a five fold increase compared to 2013 levels.

The allocation underscores the government’s strategy of prioritising infrastructure creation, logistics expansion and targeted investments in key sectors to drive durable economic growth. Major spending areas include railways, roads, digital networks and energy infrastructure, alongside steps to simplify compliance and improve credit access.

Modi said the approach reflects a deliberate strategic choice to build productive assets that create jobs and future economic capacity rather than focusing on short term populism.

Infrastructure Expansion at Unprecedented Scale​

The Prime Minister said India has undertaken one of the most extensive infrastructure building efforts in its history over the past decade.

He pointed to a doubling of airports, thousands of new aircraft orders and a more than four fold rise in the number of cities served by metro rail. Rural roads and internet connectivity are expanding rapidly, while freight corridors, ports and coastal connectivity projects are being scaled up.

“Broken and outdated infrastructure has no place in a nation aspiring to create a Viksit Bharat,” Modi said, adding that the government has focused on speed, scale and next generation infrastructure while upgrading existing assets.

Railways, High Speed Corridors and Freight Capacity​

On sector specific allocations, Modi said nearly ₹3 lakh crore has been earmarked for Indian Railways, with emphasis on high speed connectivity, freight capacity enhancement and passenger safety.

Seven new high speed rail corridors are planned to connect major cities, including the South High Speed Diamond corridor that will benefit Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala and Puducherry.

Dedicated Freight Corridors are also being expanded to ease congestion on passenger routes and reduce logistics costs for industry. Allocations for national highways, he said, have increased nearly 500 per cent compared to a decade ago.

Focus on Emerging and Strategic Sectors​

The Budget also directs investments into emerging sectors such as biopharma, semiconductors, electronics component manufacturing, rare earth corridors and chemical parks.

Modi said these initiatives are expected to provide fresh impetus to jobs and private investment while strengthening India’s future industrial capabilities.

Trust Based Governance and Compliance Reforms​

Emphasising governance reforms, the Prime Minister highlighted the continued push towards trust based governance. He said the government is reducing paperwork, decriminalising offences and simplifying compliance processes across ministries and sectors.

According to him, the state is positioned as an enabler that trusts its citizens, and these systemic changes will have a deeper impact on people’s lives than headline budget numbers.

He also underlined the government’s efforts to build an inclusive, technology driven yet human centric welfare architecture that ensures last mile delivery.

Long Term Vision: Laying Foundation for Viksit Bharat by 2047​

Framing the Budget in a long term context, Modi said it should not be viewed merely as Budget 2026. He described it as the first Budget of the 21st century that consolidates gains made since 2014 and builds momentum for the next quarter century.

Drawing a historical parallel, he said decisions taken today are laying the foundation for a developed India by 2047, just as initiatives in the 1920s helped shape India’s independence in 1947.

Positioning India in a changing global order, Modi said the post pandemic world presents new opportunities, with countries seeking partnerships in trade and innovation. He added that India’s young and increasingly skilled population, coupled with strong growth, low inflation and macroeconomic stability, strengthens its global standing.

Reiterating his earlier call from the Red Fort, “Yahi Samay Hai, Sahi Samay Hai,” Modi said that what began as a call to urgency has now evolved into a national conviction, reflecting a whole of society resolve towards achieving Viksit Bharat.