Union Budget 2026: Finance Minister Nirmala Sitharaman said the government has allocated ₹12.2 lakh crore towards capital expenditure in the latest Union Budget, accounting for 4.4 percent of GDP and marking the highest level in the past ten years to support structural reforms and economic growth.
The fiscal deficit is projected to decline to 4.3 percent of GDP in 2026-27, compared with the 4.4 percent estimated for the current financial year.
Addressing the post-Budget press conference, Sitharaman said the Budget aims to sustain growth momentum by strengthening the economy through structural reforms focused on productivity and job creation.
On the technology front, the Finance Minister highlighted the government’s focus on expanding digital infrastructure, with allocations of ₹1,000 crore per city per year, particularly across Tier-2 and Tier-3 cities.
In the electronics sector, the ₹40,000 crore electronic components manufacturing scheme was highlighted as a key step toward boosting domestic production and reducing import dependence.
On rare minerals, the government announced plans to establish rare earth corridors to support domestic supply and lower reliance on external sources, with the initiative expected to deliver an impact similar to defence corridors.
With inputs from Prasar Bharti, SHABD.