Centre plans Rs 12 lakh crore capex as private investments remain uneven: Report

In the FY26 Budget, the government set aside Rs 11.21 trillion for capital expenditure, marking a 10 percent increase over the revised estimates of the previous year

The Union government is planning to increase its investment push by hiking capital expenditure by 7 percent to around Rs 12 lakh crore in the upcoming Budget, a Mint report said on January 2.

The move signals Centre’s intent to continue its role as a key player in the country’s infrastructure growth as private investments stay uneven amid global uncertainties, the paper said.

The move underscores the Centre’s ongoing strategy of using public infrastructure outlays to prop up domestic growth, at a time when geopolitical tensions, trade-related uncertainty and volatile financial markets continue to dampen private investment sentiment.

Officials say the proposed rise in capital expenditure is premised on the government meeting its fiscal targets this year, even after significant reductions in GST and income tax rates. This, they added, has been made possible through tighter control over revenue spending and better deployment of funds by implementing agencies.

In the FY26 Budget, the government set aside Rs 11.21 trillion for capital expenditure, marking a 10 percent increase over the revised estimates of the previous year. States were also earmarked Rs 3.9 trillion in the form of grants to support their own capital spending. By November 2025, total capex utilisation stood at roughly Rs 6.6 trillion, accounting for about 59 percent of the annual allocation.