New Delhi: Union Finance Minister Nirmala Sitharaman on Wednesday said that the effective capital expenditure for FY 2026–27, including spending by states and union territories, has been pegged at Rs 17.1 lakh crore, which is 4.4 percent of India’s GDP. Replying to the debate on the Union Budget 2026–27 in the Lok Sabha, she said the increased investment in infrastructure and development would help accelerate the government’s “Viksit Bharat” vision. The Budget has raised public capital expenditure from Rs 11.2 lakh crore in BE 2025–26 to Rs 12.2 lakh crore in FY 2026–27, with higher combined spending when state allocations are included.
The Finance Minister also highlighted the government’s focus on education, skilling, and artificial intelligence, noting that AI education is being expanded beyond elite institutions to reach a wider population. She said the government aims to integrate skill development within the education system, enabling students to graduate with both academic knowledge and practical skills that can support employment or entrepreneurship.
Sitharaman said the Centre is encouraging the creation of mega entrepreneurship-building centres near industrial clusters, which could function as education hubs focused on innovation and business creation. She added that the central government is ready to collaborate with states to establish these large higher-education and entrepreneurship centres so that students can complete their studies and emerge as job creators rather than job seekers.
Speaking about infrastructure development, the Finance Minister said the government’s focus extends beyond roads and national highways to waterways, which can help reduce logistics costs and improve connectivity for inland states. She also invited states to collaborate on Mega Textile Parks, especially in industrial textiles, which are becoming an important part of modern manufacturing. The discussion on the Union Budget 2026–27 began in the Lok Sabha on Tuesday, and the Finance Minister is expected to reply to the debate in the Rajya Sabha on Thursday.
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