2026 Union Budget Focuses on Capital Expenditure and Digital Payments
Economy · 01 Sept 2026 · Source: Internet
The Union Budget 2026, presented on February 1, earmarked a record 7.5% of GDP for capital spending and introduced new incentives for digital transaction ecosystems.
Finance Minister Nirmala Sitharaman announced a capital expenditure outlay of INR 12.5 lakh crore for FY 2026-27, targeting infrastructure sectors such as highways, railways, and renewable energy to spur long‑term growth.
A major highlight was the expansion of the Digital India programme, with an additional INR 1.2 lakh crore allocated to promote cashless payments, fintech innovation, and rural broadband connectivity.
The budget also proposed a tax rebate for small businesses adopting GST-compliant digital invoicing, aiming to widen the tax base while encouraging formalisation of the informal sector.