Next budget may keep govt capex plan steady

Infra spending level may be maintained as private capex pickup expected

- Rhik Kundu & Subhash Narayan

The Centre is likely to maintain its infrastructure spending at the same level in 2026-27 as in the current fiscal year, as it anticipates a pickup in private capital expenditure, two people familiar with the matter told Mint.

The 2026-27 capex target likely at 3.1-3.2% of gross domestic product (GDP) will nudge the country toward a more measured phase of fiscal consolidation, signalling the government's intent to balance economic momentum with its fiscal deficit goal amid rising global uncertainties.

The central government may not raise the current capex ceiling substantially, although there will be adequate fiscal headroom next year to continue funding large-scale infrastructure and industrial projects already in the pipeline, said the first person, on condition of anonymity.