Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, allocated ₹15.2 lakh crore for capital expenditure, marking 18.5% growth over previous year. Total expenditure reached ₹55.8 lakh crore with fiscal deficit targeted at 4.2% of GDP. Key measures included infrastructure push through PM Gati Shakti allocation of ₹2.8 lakh crore, agriculture credit target of ₹22 lakh crore, and digital infrastructure spending of ₹1.5 lakh crore reflecting government's growth-focused fiscal policy.

The Budget 2026-27 represents India's strategic fiscal roadmap during a critical global economic transition. The substantial 18.5% increase in capital expenditure signals the government's commitment to infrastructure-led growth, particularly through the PM Gati Shakti National Master Plan which integrates transport connectivity projects. The fiscal deficit target of 4.2% demonstrates adherence to the medium-term fiscal consolidation path while providing adequate fiscal space for growth investments. Agriculture remains priority with enhanced credit flow targeting 22 lakh crore, supporting the MSP procurement mechanism and rural infrastructure. The digital infrastructure allocation of ₹1.5 lakh crore aligns with India's digital transformation agenda, encompassing 5G rollout, semiconductor manufacturing incentives, and fintech ecosystem development. Revenue mobilization strategy includes rationalization of customs duties, expansion of tax base through digital economy measures, and asset monetization receipts estimated at ₹2.1 lakh crore. The budget balances growth imperatives with fiscal prudence, addressing supply-side constraints through infrastructure spending while maintaining macroeconomic stability through controlled deficit trajectory.