Budget 2026-27 raised total infrastructure outlay to ₹12.2 lakh crore (from ₹11.2 lakh crore in FY26). The Budget projects GoI capital expenditure at ₹12.22 lakh crore and effective capital expenditure at ₹17.15 lakh crore. Key allocations: Railways ₹2,77,830 crore, Defence capital ₹2,19,306 crore, CCUS ₹20,000 crore, RDSS ₹18,000 crore. Mega textile parks announced focusing on value addition in technical textiles, along with the Natural Fibre Scheme, Textile Expansion and Employment Scheme, and National Handloom and Handicraft Programme. Nuclear Energy Mission continued with ₹20,000 crore for Small Modular Reactors (SMRs). The budget balances infrastructure expansion with fiscal consolidation — debt-to-GDP ratio projected to decline from 56.1% to 55.6%.
Budget 2026: Infrastructure Capex ₹12.2 Lakh Crore; ₹20,000 Crore CCUS; Textile Mega Parks
Infrastructure capex ₹12.2 lakh crore; effective capex ₹17.15 lakh crore; textile mega parks; nuclear SMRs ₹20,000 cr; debt-GDP ratio down to 55.6%.
Key facts
- Budget 2026-27 raised total infrastructure outlay to ₹12.2 lakh crore; total capex projected at ₹16,95,768 crore (+8.8% over RE FY26)
- Key allocations: Railways ₹2,77,830 crore, Defence capital ₹2,19,306 crore, CCUS ₹20,000 crore, RDSS ₹18,000 crore
- Mega textile parks announced for technical textiles value addition along with Natural Fibre Scheme and Textile Expansion Scheme
- Nuclear Energy Mission continued with ₹20,000 crore for Small Modular Reactors (SMRs)
- Debt-to-GDP ratio projected to decline from 56.1% to 55.6%, balancing infrastructure expansion with fiscal consolidation
PYQPrelims/PYQ angle
- RAS 2024 Government's roadmap for nuclear energy in Union Budget 2025-26 — Both engage with Union Budget priorities for nuclear Small Modular Reactors under the Nuclear Energy Mission.
Mains angle
Q: Examine the capital-expenditure priorities of Union Budget 2026-27, particularly the ₹12.2 lakh crore infrastructure outlay, the ₹20,000 crore allocation for Carbon Capture, Utilisation and Storage, and Small Modular Reactors under the Nuclear Energy Mission.
Answer (50 words):
Budget 2026-27 raised infrastructure outlay to ₹12.2 lakh crore and total capital expenditure to ₹16,95,768 crore, up 8.8 percent. Key allocations include ₹2,77,830 crore Railways, ₹2,19,306 crore Defence, ₹20,000 crore each for CCUS and Nuclear Mission SMRs; debt-GDP ratio falls from 56.1 to 55.6 percent.
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What was the total infrastructure capex outlay announced in Union Budget 2026-27?
The article specifies infrastructure outlay was raised to ₹12.2 lakh crore from ₹11.2 lakh crore in FY26.
Source: PIB
Frequently asked questions
What is the total infrastructure capex in Union Budget 2026-27?
Budget 2026-27 raised total infrastructure outlay to **₹12.2 lakh crore**, up from ₹11.2 lakh crore in FY26 (approximately 11.5% increase). Total capital expenditure was projected at **₹16,95,768 crore** (+8.8% over RE FY26), with the debt-to-GDP ratio projected to decline from **56.1% to 55.6%**.
What are the mega textile parks announced in Budget 2026-27?
Budget 2026-27 announced **mega textile parks** focused on value addition in technical textiles, along with the **Natural Fibre Scheme, Textile Expansion and Employment Scheme**, and **National Handloom and Handicraft Programme**. These form part of the **₹12.2 lakh crore** infrastructure outlay.
What is the Nuclear Energy Mission allocation in Budget 2026-27?
The **Nuclear Energy Mission** continued with **₹20,000 crore** allocated for **Small Modular Reactors (SMRs)** in Budget 2026-27. This is part of the **₹12.2 lakh crore** total infrastructure outlay. Private participation in SMRs was also permitted for the first time.
What is the RDSS allocation in Budget 2026-27?
The **Revamped Distribution Sector Scheme (RDSS)** received **₹18,000 crore** in Union Budget 2026-27 for power sector reforms including **smart metering, AT&C loss reduction**, and **DISCOM financial stability**. RDSS is part of the **₹12.2 lakh crore** total infrastructure capex allocation.
What is India debt-to-GDP ratio target under Budget 2026-27?
Under Budget 2026-27, India's **debt-to-GDP ratio** is projected at **55.6%**, down from 56.1% in FY26. The long-term target is **50% by 2030-31**. The fiscal deficit target was set at **4.3% of GDP**, down from 4.4% in FY26, while public capex was raised to **₹12.2 lakh crore**.
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