<h1>Finance Minister Confirms Capital Expenditure Increase to Rs 11.21 Lakh Crore for 2025-26, Dismisses Claims of Budget Cuts</h1> The Finance Minister clarified that capital expenditure has not been reduced but increased to Rs 11.21 lakh crore for 2025-26 from Rs 11.11 lakh crore in 2024-25. She dismissed claims of cuts as misleading and based on flawed comparisons. The Minister explained that loans to states under the 50-year special assistance scheme have increased proportionately, with Rs 1.46 lakh crore released to states by March 2025. She noted that capital expenditure was affected by factors including the Model Code of Conduct during elections, extreme weather, and lower spending by states. The Minister also detailed the progressive increase in special assistance to states since the scheme's introduction in 2020-21.