In a major push for India’s growth story, the Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman has dramatically increased public capital expenditure (capex) to Rs 12.2 lakh crore for FY 2026-27. This marks a significant jump from Rs 11.2 lakh crore in the previous year’s budget estimates, aiming to sustain momentum in infrastructure development, job creation, and long-term economic resilience. Industry experts hail this as a game-changer that will revitalize project pipelines and accelerate tangible progress across key sectors.
The Ministry of Road Transport and Highways (MoRTH) receives special attention with an 8% hike in allocation, reaching approximately Rs 3.09-3.10 lakh crore. Anand Kulkarni, director at CRISIL Ratings, described this as a “salutary” step, predicting faster awarding and execution of new road projects. This enhanced funding for MoRTH is expected to translate into quicker on-ground advancements in national highways, expressways, and connectivity initiatives, directly benefiting logistics, trade, and regional development.
A key highlight is the government’s strategic shift toward innovative financing to complement direct budgetary support. The focus on asset monetization has intensified, with the target doubled to Rs 30,000 crore (from Rs 15,000 crore previously), primarily via Toll-Operate-Transfer (TOT) models and Infrastructure Investment Trusts (invITs). This approach catalyzes private sector participation, recycles capital from existing assets into new projects, and ensures long-term fiscal sustainability. Kulkarni emphasized that road sector growth “will be significantly driven by higher reliance on monetization of assets,” reflecting a smart blend of public investment and private efficiency.
Finance Minister Nirmala Sitharaman highlighted the success of Real Estate Investment Trusts (REITs) as a proven tool for asset monetization over the years. She proposed accelerating the recycling of significant real estate assets owned by Central Public Sector Enterprises (CPSEs) through dedicated REITs. This move aims to unlock value from underutilized properties, attract institutional investors, and generate recurring revenue without losing control—further deepening capital markets and supporting infrastructure ambitions.
This budget reinforces India’s commitment to infrastructure-led growth under the Viksit Bharat vision. By prioritizing capex, innovative financing like InvITs and REITs, and targeted boosts for highways and roads, the government is positioning the economy for sustained momentum amid global challenges. Experts see this as essential for reviving project execution, boosting private investment, and driving inclusive development across the nation.
The increased outlay signals strong confidence in India’s infrastructure story, promising faster highways, better connectivity, and a multiplier effect on employment and economic activity. Stay tuned for more updates as these measures roll out!
