Budget 2026: Infrastructure Spending to Exceed ₹12 Lakh Crore, SBI Report Estimates

• Government's infrastructure spending could surpass ₹12 lakh crore in the next fiscal year, a 10% year-on-year increase, according to an SBI report.
• The Union Budget, to be presented by Finance Minister Nirmala Sitharaman on February 1, will detail the government's infrastructure spending plans.
• Government capital expenditure has significantly risen from ₹2.5 lakh crore in FY16 to an estimated ₹11.2 lakh crore in FY26, with grants for capital asset creation also increasing.
• CPSEs' capital expenditure is projected at ₹4.3 lakh crore for FY26, bringing total capital expenditure (including grants) to ₹15.5 lakh crore, representing 5.5% of GDP.
• Central government borrowing is estimated at ₹11.7 lakh crore for FY27, covering about 70% of the fiscal deficit, while state gross borrowing is projected at ₹12.6 lakh crore.

Why It Matters: Government infrastructure spending is set to rise significantly, driving long-term growth amidst global uncertainty.