Budget 2026: Capex Soars to Rs 12.2 Lakh Crore, Fiscal Deficit Dips to 4.3%

• Finance Minister Nirmala Sitharaman proposed a capital expenditure (capex) target of Rs 12.2 lakh crore for FY27, up from Rs 11.2 lakh crore in the current fiscal year.
• The government aims to continue infrastructure-led growth, focusing on Tier-2 and Tier-3 cities.
• A risk guarantee fund for the infrastructure sector and a scheme for enhancing construction equipment manufacturing will be introduced.
• The fiscal deficit target for FY27 is lowered to 4.3% of GDP, down from 4.4% in the current financial year.
• The total Budget size for 2026-27 is estimated at Rs 53.5 lakh crore, with Rs 1.4 lakh crore allocated for tax devolution to states.

Why It Matters: Budget 2026 boosts infrastructure spending and lowers fiscal deficit, signaling continued economic growth and prudence.