Group 1: Government Capital Expenditure - Central government capital expenditure is projected to exceed ₹12 lakh crore in FY27, reflecting a year-on-year growth of approximately 10% [1][2] - Total capital expenditure through the Budget has increased significantly from ₹2.5 lakh crore in FY16 to ₹11.2 lakh crore in FY26, indicating a strong upward trend [2] - Effective capital expenditure, combining budgetary capex and grants, reached ₹15.5 lakh crore in FY26, with total capex rising from ₹7.0 lakh crore in FY16 to ₹19.8 lakh crore in FY26 [4] Group 2: Grants and CPSE Expenditure - Grants for capital asset creation rose from ₹1.3 lakh crore in FY16 to ₹4.3 lakh crore in FY26, demonstrating increased support for asset creation at various government levels [3] - Capital expenditure by Central Public Sector Enterprises (CPSEs) was reported at ₹4.3 lakh crore in FY26, funded through internal and extra-budgetary resources [3] Group 3: Borrowing and Fiscal Management - Net central government borrowing for FY27 is estimated at around ₹11.7 lakh crore, which constitutes nearly 70% of the fiscal deficit, with repayments expected to be around ₹4.60 lakh crore [5] - Gross borrowings at the state level are projected at ₹12.6 lakh crore, with repayments estimated at ₹4.2 lakh crore [5] - The report suggests potential reforms to scale down State Development Loans (SDLs), which could help reduce net State borrowings [6] Group 4: Economic Context and Global Factors - The Union Budget presentation occurs amid heightened global uncertainty, with concerns about the impact of global realignment on financial markets [7] - There are apprehensions regarding crude oil prices and their potential to disrupt the current supply-driven stability, which could affect broader commodity markets [7]

Government Capital Expenditure - Government capital expenditure is projected to exceed Rs 12 lakh crore in FY27, reflecting a year-on-year growth of approximately 10 percent [1][9] - Total capital expenditure through the Budget has increased significantly from Rs 2.5 lakh crore in FY16 to Rs 11.2 lakh crore in FY26 [1][9] - Grants for capital asset creation rose from Rs 1.3 lakh crore in FY16 to Rs 4.3 lakh crore in FY26, indicating increased support for asset creation at various government levels [2][9] Central Public Sector Enterprises (CPSEs) - Capital expenditure by CPSEs, funded through internal and extra-budgetary resources, reached Rs 4.3 lakh crore in FY26 [5][9] - When combining budgetary capital expenditure and grants, effective capital expenditure rose to Rs 15.5 lakh crore in FY26 [5][9] Total Capital Expenditure - The grand total capital expenditure, which includes budgetary spending, grants for capital assets, and CPSE capex, increased from Rs 7.0 lakh crore in FY16 to Rs 19.8 lakh crore in FY26 [6][9] - Capital expenditure as a share of GDP remained robust at around 5.5 percent in FY26, underscoring the government's commitment to infrastructure-led growth [6][9] Borrowing Estimates - Net central government borrowing for FY27 is estimated to be around Rs 11.7 trillion, close to 70 percent of the fiscal deficit [7][10] - Repayments are projected at approximately Rs 4.60 trillion, which includes an expected buyback of Rs 1 lakh crore and estimated switches of Rs 1.5 trillion [7][10] - At the state level, gross borrowings are projected at Rs 12.6 trillion, with repayments estimated at Rs 4.2 trillion [10] Market Concerns - The report raises concerns regarding crude oil prices and their potential impact on the broader commodity market, questioning whether crude could break out of its current stability [8][10]