New Delhi, Jan 28 || The government's capex (capital expenditure) may cross Rs 12 lakh crore in the forthcoming Union Budget for 2026-27, which would represent an increase of around 10 per cent over the corresponding figure of the previous financial year, according to an SBI report released on Wednesday.
This would enable the government to step up investments in big-ticket infrastructure projects in the highways, railways, ports and power sectors to boost growth and jobs in the economy.
The FY27 budget comes against the backdrop of a global economy ravaged by heightened uncertainty and fragmentation, so it is important that India continues to be on the path of fiscal prudence as global debt threatens to rip apart the existing order. Remarkably, the country’s recovery post-pandemic is better than what it was post global financial crisis, the report states.
It expects a modest growth in tax revenue and flat growth in non-tax revenue for FY 27. The nominal GDP growth relevant for Budget math is expected at around 10.5 per cent-11 per cent, as a surge in international commodity prices may percolate in WPI inflation.