Union Budget 2026: Govt Chose Reforms Over... ... Union Budget 2026 LIVE: Finance Minister Nirmala Sitharaman Ninth Budget Today All Updates

Union Budget 2026: Govt Chose Reforms Over Rhetoric, Says FM Sitharaman

Finance Minister Nirmala Sitharaman on Sunday said the government has focused on meaningful reforms rather than rhetoric while shaping India’s economic direction. Presenting the Union Budget for 2026–27 in the Lok Sabha, she said India will continue to take firm and forward-looking steps towards achieving the goal of a Viksit Bharat.

During her address, the Finance Minister also laid the 16th Finance Commission report before Parliament. The report details the framework for the sharing of tax revenues between the Centre and the states for the 2026–2031 period.

Union Budget 2026: Capital Expenditure Set at Rs 12.2 Lakh Crore for FY27

The Finance Minister announced a significant increase in public capital expenditure, proposing an allocation of Rs 12.2 lakh crore for the financial year 2026–27. She highlighted that public capex has risen sharply from Rs 2 lakh crore in 2014–15 to Rs 11.2 lakh crore in the Budget Estimates for 2025–26, and said the fresh hike aims to sustain this growth momentum.

To boost confidence among private developers during the infrastructure construction phase, she proposed setting up an Infrastructure Risk Guarantee Fund. This fund will provide prudently calibrated public credit guarantees to lenders.

She also noted that Infrastructure Investment Trusts (InvITs) have emerged as an effective tool for asset monetisation. To speed up the recycling of assets, the government plans to monetise major real estate holdings of CPSEs through dedicated InvITs.

Additionally, to encourage environmentally sustainable cargo movement, the Finance Minister proposed the development of new dedicated freight corridors, including a key corridor connecting Dankuni in the east to Surat.