This time a capex provision of Rs 12.2 lakh crore has been made in the budget.Image Credit source: ChatGPT
In the budget, the government has made a provision of more than Rs 12 lakh crore for Capex. Now the biggest question is where will this money be spent? In which sectors work will be done with this money? Expenditure Secretary V. Vulanam has come forward in this matter. He has given detailed information about where and on what every penny of this capex will be spent. Let us tell you that on November 1, the Finance Minister of the country had presented the budget. This time the budget is estimated to be Rs 53.5 lakh crore. Let us also tell you what information the Expenditure Secretary has given.
Where will the capex money be spent?
Expenditure Secretary V. Vulanam said that the government’s capital expenditure (capex) of Rs 12.2 lakh crore for 2026-27 will be mainly invested in shipbuilding, national highways, railways and metro rail projects. In a post-Budget interview, Vulnam said sectors with large-scale ongoing and new infra projects—particularly highways, railways and urban transport, including metro networks—will continue to play a major role in public capital expenditure in the next financial year. The government has budgeted a total expenditure of over Rs 53.47 lakh crore for 2026-27, of which the capex has been set at Rs 12.22 lakh crore. The purpose of this expenditure is to create physical infra and promote long-term growth.
Infra status for shipbuilding
Highlighting shipbuilding as an emerging important sector, Vulnam said that the sector has now been given infra status and its role is expected to become even bigger in the coming years. He said that shipbuilding has become an infrastructure sector and now it will play an important role. We are extremely keen to increase our share in shipbuilding globally. About 5 percent of India’s import-export goods move on Indian-owned ships. About Rs 6 lakh crore is spent annually on hiring foreign companies for freight transportation. So, this issue will arise again, and there are many such companies, and this will be our main target.
70 thousand crore package
To support this initiative, the Union Cabinet in September last year had approved a package of Rs 69,725 crore to revive India’s shipbuilding and maritime sector. The package follows a four-pillar approach to implement legal, taxation and policy reforms to expand domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, strengthen technical capabilities and skill development and build a strong maritime ecosystem.
These figures were presented in the budget
For the current financial year, the government has revised its capex estimate to Rs 10.95 lakh crore, lower than Rs 11.21 lakh crore originally set in the budget. Public capex has grown rapidly over the past decade, from about Rs 2 lakh crore in 2014-15 to Rs 12.2 lakh crore in 2026-27. Capital expenditure projection for FY2027 is 4.4 percent of GDP—an all-time high.