RAS question
What is the capital expenditure target in Union Budget 2026-27?
Correct answer: (A) ₹12.2 lakh crore.
Union Budget 2026-27 set the public capital expenditure target at ₹12.2 lakh crore, or 3.1% of GDP.
Explanation
The target is ₹12.2 lakh crore because the Press Information Bureau budget note says Union Budget FY 2026-27 announced public capital expenditure at that level. Public capital expenditure is proposed to rise by about 9% from the FY 2025-26 Budget Estimate of ₹11.21 lakh crore. The ₹12.2 lakh crore allocation equals 3.1% of GDP. In exam terms, this is not just a spending number; it signals the Budget's continued infrastructure-led growth push, where public investment is used to support capacity creation and crowd in private investment.
Why the other options are wrong
- (B) ₹11.2 lakh crore is close to the FY 2025-26 Budget Estimate of ₹11.21 lakh crore, not the FY 2026-27 target of ₹12.2 lakh crore.
- (C) ₹14.0 lakh crore overstates the announced FY 2026-27 public capital expenditure target of ₹12.2 lakh crore.
- (D) ₹10.5 lakh crore understates the announced FY 2026-27 target and is below even the FY 2025-26 Budget Estimate of ₹11.21 lakh crore.
Concept
This tests the Union Budget component of Indian Economy, especially capital expenditure and infrastructure-led growth. RAS repeatedly asks such figures because capex targets show the government’s fiscal priorities and investment stance.