Railways allocated Rs 2.77 lakh crore for capital expenditure in FY2026-27, funding rolling stock and infrastructure expansion.
Capital allocation to the railways for FY2026-27 is Rs 2,77,830 crore, up 10.25% from the prior year and including Rs 15,000 crore from Extra Budgetary Resources. Funds are earmarked for new lines, gauge conversion, doubling, rolling stock, and Rs 7,500 crore for signalling and telecom-supporting expansion of the Kavach system. Projected earnings are Rs 3,85,733.33 crore against expenditure of Rs 3,82,186.01 crore, producing a modest surplus; pension obligations are identified as a major and rising expenditure item.

Adampur airport renamed Sri Guru Ravidass Maharaj Ji Airport; Halwara civil terminal commissioned to boost regional air connectivity.
The Adampur airport has been renamed Sri Guru Ravidass Maharaj Ji Airport and the Halwara civil terminal-developed as a Rs 54.67 crore joint venture between the Punjab government and the Airports Authority of India-has been inaugurated. The 2,000 square metre terminal with associated apron provides peak-hour capacity of about 300 passengers, annual handling up to 200,000 passengers, and a runway capable of A320-type aircraft while incorporating multiple sustainability features to enhance regional air connectivity and socio-economic development.

Union Budget 2026 advances reforms, infrastructure led growth and support for manufacturing, MSMEs, education and inclusive finance.
Union Budget 2026 combines fiscal prudence with sustained capital expenditure and infrastructure led reforms to strengthen manufacturing, MSMEs, agriculture and education; it prioritises support for biopharma, semiconductors, electronics, rare earths and container manufacturing to boost domestic industrial capacity and export competitiveness, while advancing inclusive finance, skilling and tax rationalisation to support services and job creation.

India defence budget boost funds capital acquisitions, prioritises domestic procurement and customs duty relief for aerospace supply chains.
The 2026-27 defence budget raises total outlay to Rs 7,84,678 crore with capital expenditure at Rs 2,19,306 crore, prioritising aircraft, naval assets and modernisation. About 75% of capital acquisitions are reserved for domestic procurement. The Finance Minister proposes exempting basic customs duty on aircraft components, parts and raw materials used for manufacture and maintenance by defence units to bolster the defence and civil aerospace industrial base. Allocations also increase for border infrastructure, defence R&D and the Ex-Servicemen Contributory Health Scheme.

Budget proposes seaplane VGF, customs duty exemptions for aircraft components and revised international baggage duty-free rules.
The Budget proposes a basic customs duty exemption for components and parts used in manufacture of civilian, training and other aircraft and for raw materials imported to make parts for defence-sector MRO; introduces incentives to indigenise seaplane manufacturing and a Seaplane VGF Scheme to support operations; and revises international baggage clearance rules to enhance duty-free allowances and clarify temporary carriage of goods.

Indian Railways budget boosts high-speed corridors, freight connectivity and domestic rail manufacturing to improve logistics and regional links.
The Union Budget's record rail capital outlay prioritises high-speed corridors, freight infrastructure, safety modernisation and targeted support for domestic container manufacturing, driving demand for rolling stock, wagons and rail engineering. It advances a Dankuni-Surat Dedicated Freight Corridor and expands Vande Bharat services, including 24-coach sleepers, while aligning investments with a multimodal framework to lower logistics costs and strengthen regional connectivity, notably benefiting eastern India's port and hinterland linkages.

Union Budget introduces a 20-year tax holiday for global data centres plus a 15% safe harbour for related-party costs.
Budget FY27 introduces a 20-year tax holiday for overseas global data centre providers and a 15% safe harbour on related-entity costs; increases Securities Transaction Tax on futures and options and treats buyback proceeds as capital gains; implements the new Income Tax Act, 2025 from April 1 with simplified rules; rationalises customs exemptions and duty rates (including waivers on select drugs and reduced duty on personal imports); and advances capital expenditure and targeted incentives for manufacturing, biopharma, electronics and SMEs alongside fiscal consolidation targets.

Union Budget emphasizes inclusive development, policy continuity, and targeted allocations for semiconductors, biopharma, waterways, and defence.
The Budget is framed as a policy of inclusive development and continuity, emphasising sustained growth, inflation control, and investments in education and infrastructure to support manufacturing and youth employment. It includes targeted allocations for semiconductors ( Rs 400 crore) and biopharma (Rs 10,000 crore), plans to operationalise 20 national waterways and develop ship repair centres, increased transport spending, priority support for coconut and fisheries, and a defence allocation of Rs 7.8 lakh crore, while promoting rural livelihoods and small artisan industries.

AVGC Content Creator Labs to be set up in 15,000 schools and 500 colleges to boost talent development.
Announced budgetary support establishes AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges under the Indian Institute of Creative Technologies to foster capacity in animation, visual effects, gaming and comics, and expands talent-development funding including a dedicated Rs 250 crore for the AVGC sector.

Union Budget accelerates grid scale energy storage by extending BCD exemptions for lithium ion manufacturing and solar glass.
The Budget extends Basic Customs Duty exemptions on capital goods for lithium ion cell and Battery Energy Storage System manufacture to accelerate grid scale energy storage and renewable integration; it exempts Basic Customs Duty on sodium antimonate for solar glass manufacture to bolster domestic solar supply chains and announces a Rs 20,000 crore Carbon Capture Utilization and Storage scheme.

Transfer to Jammu and Kashmir proposed at Rs 43,290 crore for FY27, central assistance up and project funding increased.
The budget proposes a transfer of Rs 43,290.29 crore to Jammu and Kashmir for 2026-27, a 4.72% rise; Central Assistance to Union Territory is increased to Rs 42,650.27 crore (about 5% up). Programmatic changes include raising JTFRP EAP funding from Rs 185.34 crore to Rs 259.25 crore (39.9% increase), while disaster relief and capital support remain at Rs 279 crore and capital expenditure is retained at Rs 101.77 crore.

Budget 2026-27 links fiscal consolidation with big capital spending and targeted support for manufacturing, MSMEs and infrastructure.
Budget 2026-27 links disciplined macroeconomic management-reducing fiscal deficit and controlling inflation-with elevated capital expenditure to drive growth, while providing targeted sectoral incentives for manufacturing, strategic technologies, MSME competitiveness and infrastructure development to support employment and inclusive human capital initiatives.

Kerala polls: UDF to release a detailed vision document; Budget includes rare earth corridors and turtle trails.
UDF will publish a detailed vision document for the Kerala polls focused on opportunity and development, with Tharoor citing the coalition's governance experience and recent resolution of internal grievances. The Union Budget 2026-27 offered limited Kerala-specific measures, principally support for rare earth corridors to advance mining and manufacturing and proposals for ecologically sustainable trekking and turtle trails along coastal nesting sites.

E-Courts Project Phase III receives Rs 1,200 crore to continue nationwide digitisation of subordinate courts.
The Union Budget allocates Rs 1,200 crore to the law ministry for e-Courts Project Phase III, reducing the current year estimate but sustaining funding for nationwide digitisation of subordinate courts. Phase III remains a central sector scheme with a total planned outlay of Rs 7,210 crore over four years, continuing the National e-Governance Plan's ICT enablement of the judiciary after Phase II concluded in 2023.

MEA receives Rs 22,118 crore allocation; overseas development partnerships prioritized with major shares for Bhutan, Nepal, Maldives.
The 2026-27 Union Budget allocates Rs 22,118 crore to the Ministry of External Affairs, including an overseas development partnership portfolio of Rs 6,997 crore. Of that portfolio, Rs 4,548 crore is earmarked for immediate neighbours for infrastructure and community projects. Major bilateral allocations include Rs 2,288 crore for Bhutan, Rs 800 crore for Nepal, Rs 550 crore each for the Maldives and Mauritius, Rs 60 crore for Bangladesh, Rs 150 crore for Afghanistan, Rs 400 crore for Sri Lanka, Rs 300 crore for Myanmar and Rs 120 crore for Latin America.

Kerala budget criticism: CM says Union Budget neglects state projects and undermines federal resource allocation.
Kerala's executive asserts the Union Budget exhibits budgetary discrimination by omitting key project allocations-an AIIMS, seven high-speed railway corridors, and a special Vizhinjam port package-and contends that the Finance Commission's decision to retain the state's 41 percent share undermines federal principles and equitable resource distribution.

Union Budget boosts SME capital via growth and self reliant funds and simplifies income tax and TDS/TCS compliance.
Union Budget enlarges the SME Growth Fund and uses the Self Reliant India Fund to supply equity and risk capital to micro enterprises, with Credit Guarantee and Infrastructure Risk Guarantee Fund mechanisms to mobilise private investment and integrate MSMEs into large projects. The Budget proposes a new Income Tax Act and simplification of TDS/TCS to reduce compliance burdens on small industries.

Union Budget 2026-27 seen as favouring top earners; opposition says it ignores education, health and jobs.
Opposition MPs criticised the Union Budget 2026-27 as favouring the upper segment while neglecting education, healthcare, agriculture and youth; they raised concerns about rising income inequality, persistent unemployment and unmet job commitments, and urged greater fiscal transparency including disclosure on per capita incomes for lower income cohorts.

Union Budget 2026 ignored farmers' demands and offered no clear jobs or industry relief, regional leaders say.
State leaders criticised Budget 2026-27 for lacking commitments on minimum support price and specific relief for farmers, industry and youth; they argued that the rise in capital expenditure and infrastructure measures did not provide direct remedies or clear roadmaps for Punjab and Haryana's agricultural, industrial and employment needs.

Union Budget 2026 increases Jammu and Kashmir allocation by Rs 2,000 crore to boost regional development.
The Union Budget 2026 increases Jammu and Kashmir's allocation to Rs 43,290.29 crore-about Rs 2,000 crore higher-targeting balanced regional development across industry, MSMEs, semiconductors, education, defence, agriculture, sports and tourism, with implementation at the territorial level and stated safeguards to prevent misuse and support existing industries.