Capital Spending Surge Pushes Overall Outlay to Rs 13.6 Lakh Crore

The first three months of FY 2026‑27 saw a pronounced jump in India’s capital expenditure. Outlays on ports, national highways, and railway projects climbed to Rs 3.4 lakh crore, up from Rs 2.75 lakh crore in the corresponding period of the previous year.

This increase lifted the total government spending for the quarter to Rs 13.6 lakh crore, compared with Rs 12.2 lakh crore a year before. While the higher capital outlay is intended to strengthen long‑term growth prospects, it also adds pressure on the fiscal deficit, which stands at Rs 3.1 lakh crore.

Economists caution that rising subsidies on petroleum products and fertilizers could further stretch the budget, potentially widening the deficit if not managed carefully.