Union Budget 2026-27 Highlights: PM Modi Lauds Vision for Economic Transformation

KEY TAKEAWAYS:

PM Modi praised Finance Minister Sitharaman for a comprehensive Budget roadmap.
Total capital investment pegged at ₹17.15 lakh crore in 2026-27.
Strong focus on MSMEs, skilling, next-generation infrastructure, healthcare and education.

The Union Budget 2026-27 highlights came into sharp focus on Tuesday as Prime Minister Narendra Modi praised Finance Minister Nirmala Sitharaman for presenting what he described as a comprehensive blueprint for India’s economic transformation.

Taking to X after Sitharaman’s speech in the Lok Sabha, Modi said the Budget clearly explained how the government’s policies would accelerate growth and strengthen India’s journey towards Viksit Bharat.

PM Modi Highlights Reform Express and Growth Engines

In his post, Modi said Sitharaman emphasised key drivers such as the “Reform Express,” support for MSMEs, skilling initiatives, next-generation infrastructure and sustained efforts to strengthen healthcare and education.

He noted that the Budget presents a holistic vision that balances economic growth with social development, while ensuring that reforms translate into tangible outcomes for citizens and businesses.

Union Budget 2026-27 Highlights Major Capital Investment Push

Addressing the Lok Sabha, Sitharaman said the Budget provides for a total capital investment of ₹17.15 lakh crore in 2026-27. This spending is expected to have a four-fold multiplier effect on the economy, accelerating growth momentum.

She added that the Centre’s own capital expenditure stands at ₹12.22 lakh crore, equivalent to 3.1 per cent of GDP, marking an 11.5 per cent increase over the previous financial year. The government expects this sustained capex push to crowd in private investment and boost job creation.

States’ Share, Infrastructure and Skill Development

Sitharaman reaffirmed that 41 per cent of taxes are devolved to states in line with constitutional provisions, noting that the figures are audited by the Comptroller and Auditor General (CAG). She said total resources to states, including tax devolution and centrally sponsored schemes, will reach ₹25.44 lakh crore—₹2.7 lakh crore more than in 2025-26.

Also Read | India US Trade Surplus Likely to Cross $90 Billion on Export Surge: SBI Research

The Finance Minister outlined plans to establish mega centres that integrate education and skill development, enabling youth to become entrepreneurs. These centres can be located near industrial clusters and also function as higher education hubs with central support.

Next-Gen Infrastructure, Healthcare and Agriculture Focus

The Budget places strong emphasis on next-generation infrastructure, encouraging states to develop mega food parks, IT parks, smart cities and waterways under PM Gati Shakti norms. Allied and Health Services hubs are proposed to integrate medical education, hospitals and treatment facilities, boosting healthcare access and medical tourism.

Agriculture and horticulture also receive a major push, with high-value crops such as coconut expected to benefit nearly one crore farmers. Sitharaman said the Agri Stack will provide farmers with scientific data on soil, fertilisers and inputs, improving productivity and incomes.

Inclusive Growth at the Core

Sitharaman stressed that central schemes remain open to all states, ensuring equitable access to resources and promoting inclusive growth across regions. The Budget, she said, aligns fiscal discipline with long-term development goals.

With strong backing from the Prime Minister, the Union Budget 2026-27 is being positioned as a key driver of India’s economic transformation, combining reform, investment and inclusion to sustain growth in the years ahead.