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Budget 2026: Rs 17.1 Lakh Crore Capex Push for Viksit Bharat, AI Education

Finance Minister Nirmala Sitharaman stated that the effective capital expenditure for FY 2026-27 is Rs 17.1 lakh crore, amounting to 4.4% of GDP. She emphasized this investment will drive progress towards the Viksit Bharat goal. The minister highlighted a major push to democratize AI education and integrate skilling within the academic curriculum to foster entrepreneurship. Additionally, the infrastructure focus extends to waterways and new-age industrial textile parks to reduce logistics costs.

Key Points: Budget 2026 Capex at Rs 17.1 Lakh Crore, 4.4% of GDP

  • Rs 17.1 lakh crore effective capex
  • Push for AI mass education
  • Focus on entrepreneurship hubs
  • Infrastructure beyond roads & highways
3 min read

Effective capital expenditure in Union Budget 2026 is Rs 17.1 lakh crore, 4.4% of GDP: Sitharaman in Lok Sabha

FM Sitharaman outlines Rs 17.1 lakh crore effective capital expenditure in Budget 2026-27, focusing on infrastructure, AI education, and entrepreneurship.

"AI education is not just kept at elite level, but it is now for the masses. - Nirmala Sitharaman"

New Delhi, February 11

The effective capital expenditure for the Financial Year 2026-27, including that for states and union territories is Rs 17.1 lakh crore, which is 4.4% of the Gross Domestic Product and this will give a push to the goal of Viksit Bharat, Union Finance Minister Nirmala Sitharaman said on Wednesday.

Replying to the debate in the Lok Sabha on the Union Budget 2026-27, Sitharaman outlined various government initiatives, including skilling and infrastructure investment.

The Budget 2026 has increased public capex from Rs 11.2 lakh crore in BE 2025-26 to Rs 12.2 lakh crore in FY2026-27. Sitharaman said that taken together with the provisions for states and union territories, the effective capital expenditure is Rs 17.1 lakh crore.

She said the government has laid thrust on AI education, realising its potential. "AI education is not just kept at elite level, but it is now for the masses," she said.

The Union Minister also talked about steps to boost entrepreneurship.

"We have said that instead of waiting to qualify and finishing your education and coming out and seeking where should they go for acquiring skills, the skilling element can be brought into education itself and at the end of the day when they come out, students can say I can become entrepreneur and this kind of a mega centre can be kept next to any industrial cluster that any state has," she said.

"So, these mega entrepreneurship building centres as education hubs can also be coming up from any state. We are willing to work with states so that this mammoth higher education centre can be propped up and therefore students can go there and come out as entrepreneurs..." she added.

The Finance Minister talked about the Centre's push for infrastructure.

"It's not just roads, it's not just national highways. We are also looking at waterways, so that the cost of logistics may come down and states which are not connected to sea ports will have advantage of moving goods faster at a lesser cost," she said.

Sitharaman said the Centre is willing to work with states for Mega textile Parks, particularly looking at industrial textiles, which are going to be "new age" and becoming a part of the manufacturing sector.

"Whether it's car cushions which is completely made of industrial textiles...so these new age textiles requirements can also be fulfilled. I welcome any state, which wants to enter this area. The Centre is willing to collaborate with them," she said.

Lok Sabha took up discussion on the Union Budget yesterday. Sitharaman is expected to reply to the debate in the Rajya Sabha on Thursday.

- ANI

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Reader Comments

P
Priya S
AI education for the masses is the best news! As a teacher, I've seen how access to tech is limited. If this skilling is integrated into education itself, it can truly democratize opportunities. Hope it reaches government schools in tier 2/3 cities.
R
Rohit P
Good numbers on paper. But where is the accountability? Every year capex increases, but we still have potholed roads and delayed projects. The collaboration with states is key – hope it's not just political talk.
S
Sarah B
The emphasis on entrepreneurship hubs next to industrial clusters is smart. It creates a direct pipeline from learning to doing. Mega textile parks could be a game-changer for employment in states like Tamil Nadu and Gujarat.
V
Vikram M
4.4% of GDP is a healthy number. The multiplier effect of capital expenditure on jobs and growth is well known. Focus on industrial textiles shows forward thinking. Jai Hind!
K
Kavya N
As a small business owner, reducing logistics cost via waterways sounds promising. But will it actually materialize in the next 3-5 years? That's the real question. We need faster implementation, less announcement.

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