In Budget 2026, Finance Minister Nirmala Sitharaman said the target for capex will be raised to Rs 12.2 lakh crore for FY27 from Rs 11.2 lakh crore earmarked for the current fiscal year and announced a slew of measures to boost infrastructure in the country.
The Finance Minister said that the government also proposes to set up a risk guarantee fund for the infrastructure sector.
GDP growth projection
In the Budget 2026, Nominal GDP growth is estimated at 10 per cent
GST collection projection
In Budget 2026, the FY27 GST revenue collection is projected at Rs 10.19 lakh crore, compared to Rs 10.46 lakh crore in FY26.
For FY27, the RBI dividend to the government is projected at 3.16 lakh crore.
While net tax receipts are estimated at Rs 28.7 lakh crore for FY27, the Finance Minister added that total expenditure for FY27 is estimated at Rs 53.5 lakh crore.
Fiscal deficit
The Finance Minister said that the fiscal deficit in FY27 is expected to be 4.3 per cent of GDP, lower than 4.4 per cent in FY26. She added that the government will borrow Rs 11.7 lakh crore in FY27 from dated securities to fund the fiscal deficit.
Sitharaman also said the government will provide Rs 1.4 lakh crore in tax devolution to the states in the next financial year.
Finance Minister Sitharaman stated that from 2026-27 onwards, fiscal policy would endeavour to maintain the fiscal deficit in a way that the central government debt is on a declining path as a percentage of GDP.
The size of the Budget for 2026-27 is pegged at Rs 53.5 lakh crore.
Debt to GDP ratio
In Budget 2026, the government has proposed lowering the debt-to-GDP ratio to 55.6 per cent in FY27, from 56.1 per cent in the current fiscal year.
Presenting the Union Budget 2026-27, the Finance Minister said the Centre has allocated Rs 5,000 crore for CITY Economic Regions (CERs) over five years.
She also said the government has accepted the recommendations of the 16th Finance Commission, retaining a 41 per cent tax devolution formula.