FM Defends FY27 Budget: Capex Push, Higher State Transfers to Power Growth

• Finance Minister Nirmala Sitharaman defended the FY27 Union Budget in Lok Sabha, prioritizing capital expenditure and higher state transfers.
• Capital expenditure increased by 11.5% in FY27, with effective capex estimated at 4.4% of GDP (₹17 lakh crore), acting as a "force multiplier" for growth.
• The Centre raised the capital expenditure grant under SASCI to ₹2 lakh crore, supporting state infrastructure projects.
• FY27 fiscal deficit pegged at 4.3% of GDP, achieved through improved revenue mobilization and calibrated spending, not expenditure restriction.
• 41% of tax revenues devolved to states, with over ₹25 lakh crore (including Centrally Sponsored Schemes) to be transferred in FY27, exceeding previous estimates.