While addressing Parliament during the presentation of the Budget, Sitharaman said that public capital expenditure is proposed to be increased to ₹12.2 lakh crore in the Budget Estimates for Financial Year 2026–27. The proposed allocation follows an allocation of ₹11.2 lakh crore in the Budget Estimates for Financial Year 2025–26.
Among the key proposals, the Budget aims to set up an Infrastructure Risk Guarantee Fund to provide partial credit guarantees to lenders during the infrastructure development and construction phase.
On a sector-wise basis, the Ministry of Road Transport and Highways has been allocated ₹3,09,875.30 crore in the Budget Estimates for Financial Year 2026–27, compared with ₹2,87,333.16 crore in the Budget Estimates for Financial Year 2025–26. Accordingly, ₹1,87,293.16 crore has been earmarked for the development of high-speed corridors, compared with ₹1.70 lakh crore in the previous year.
Meanwhile, the Budget documents show that the allocation for maintenance and repair of National Highways has been increased to ₹5,020 crore from ₹4,595 crore. The provisions for works under the Roads Wing have also increased to ₹86,125 crore.
Apart from roads and National Highways, Indian Railways has been allocated ₹2.78 lakh crore for Financial Year 2026–27. Sitharaman proposed the development of seven new high-speed rail corridors, including Mumbai–Pune, Delhi–Varanasi and Hyderabad–Bengaluru. Additionally, the Finance Minister proposed a new Dankuni–Surat Dedicated Freight Corridor.
In contrast, the Ministry of Civil Aviation has received an allocation of ₹2,102.87 crore in the Budget Estimates for Financial Year 2026–27. As per the Demands for Grants, the Airports Authority of India will have an outlay of ₹4,699.92 crore in the Budget Estimates for Financial Year 2026–27, to be met entirely through internal and extra-budgetary resources, compared with ₹4,193.83 crore in the Budget Estimates for Financial Year 2025–26. Notably, the allocation for the Regional Connectivity Scheme stood at ₹540 crore in the Budget Estimates for Financial Year 2025–26, with the Revised Estimate at ₹434.50 crore.
Besides this, the Budget also places emphasis on waterways and coastal shipping. According to the Finance Minister, the Centre plans to operationalise 20 new National Waterways over the next five years, beginning with National Waterway–5 in Odisha. Furthermore, the proposed Coastal Cargo Promotion Scheme aims to raise the share of inland and coastal shipping from 6 per cent to 12 per cent by 2047.
In addition, the Finance Minister highlighted the government’s continued use of financing mechanisms such as Infrastructure Investment Trusts and Real Estate Investment Trusts, along with institutions including the National Investment and Infrastructure Fund and the National Bank for Financing Infrastructure and Development, for public infrastructure creation.
Published on February 1, 2026
