Budget 2026: Infra Capex Soars to ₹12.2 Lakh Crore, Targets Cities, Green Logistics

• Finance Minister Nirmala Sitharaman increased infrastructure capital expenditure by 8.9% to ₹12.2 lakh crore for FY26-27, focusing on urban and logistics infrastructure.
• The government aims to boost infrastructure in Tier II and Tier III cities, recognizing them as important growth centers.
• A new Infrastructure Risk Guarantee Fund is proposed to de-risk private participation by providing partial credit guarantees to lenders.
• New dedicated freight corridors, including Dankuni (West Bengal) to Surat (Gujarat), and 20 new national waterways will be operationalized to promote green freight movement.
• The Budget introduces City Economic Regions (CERs) with ₹5,000 crore allocation per CER and plans for seven new high-speed rail corridors to enhance regional connectivity.

Why It Matters: Budget 2026 significantly boosts infra spending, focusing on urban development, green logistics, and private investment de-risking.