Budget 2026-27 avoided populism, focused on productive capex to power ‘Reform Express’: PM Modi
File photo: PM Modi (Picture credit: ANI)
Calling productive spending a defining feature of his government, Prime Minister Narendra Modi on Sunday said the recently unveiled Union Budget consciously steered clear of short-term populism and instead channelled record capital outlays into infrastructure to drive jobs and sustainable growth.In an exclusive interview with news agency PTI, PM Modi said his government has used its time in office to plug “structural gaps left behind by earlier administrations”, pursue bold reforms and lay the foundations for a developed India, asserting that the latest Budget marks the “next level” of that journey.Describing the Budget for the fiscal year beginning April 1 as reflective of his governance philosophy, he said the document “is a good reflection of our governance style and priorities”.“This Budget represents the next level in this journey, imparting momentum to our ‘Reform Express.’ It is designed to accelerate momentum and prepare our youth for the opportunities of a rapidly changing world,” the prime minister told PTI.
Capital outlay scaled up fivefold since 2013
Citing the pre-Budget Economic Survey, PM Modi said capital accumulation, labour formalisation and digital public infrastructure have together elevated India’s potential growth rate to 7 per cent.“Productive spending has been a hallmark of our government. The high capital expenditure reflects our focus on infrastructure and capital investment, which are strong engines for long-term growth,” he said in the written interview to PTI.The FY27 Budget scales up capital expenditure to Rs 12.2 lakh crore, a fivefold increase compared to 2013, reinforcing the government’s strategy of prioritising infrastructure creation, logistics expansion and investment in sunrise sectors to drive long-term growth. The Budget emphasises spending on rail, roads, digital and energy infrastructure, alongside measures to ease compliance and improve credit flow as a central lever for job creation and economic momentum.“This reflects a conscious strategic choice to invest in assets that create productivity, jobs, and future economic capacity rather than short-term populism. This shows that our focus is on improving the quality of life for the people, creating jobs for our youth and advancing the nation’s progress towards Viksit Bharat,” PM Modi said.
Infrastructure push: Rail, roads, airports
The prime minister said high-quality infrastructure had long been neglected, posing challenges for citizens and businesses.“Broken and outdated infrastructure has no place in a nation that aspires to create a Viksit Bharat,” he said.“Therefore, we revolutionised the sector with our speed, scale and focus on creating next-gen infrastructure, while upgrading the existing infrastructure. In the last decade or so, India has seen perhaps the most expansive infrastructure-building effort in our history, an unprecedented emphasis on quality! The most important aspect of this has been the way we have created infrastructure with the future in mind,” he added.Highlighting the scale of expansion, PM Modi said the number of airports has doubled and orders for thousands of aircraft have been placed. The number of cities with metro services has more than quadrupled, while rural roads and internet connectivity have expanded rapidly. Investments have also been made in freight corridors, ports and coastal connectivity.On sectoral allocations, he said a capital outlay of nearly Rs 3 lakh crore has been earmarked for Indian Railways, with priority given to high-speed connectivity, freight capacity and passenger safety.Seven new high-speed rail corridors are proposed to connect major cities, including the South High-Speed Diamond corridor, which will benefit Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala and Puducherry. Dedicated Freight Corridors are also being expanded to decongest passenger routes and reduce logistics costs for industry.Allocations for national highways have increased nearly 500 per cent compared to a decade ago, according to PTI.
Sunrise sectors and governance reforms
PM Modi said the Budget also steps up investments in emerging areas such as biopharma, semiconductors, electronics component manufacturing, rare earth corridors and chemical parks.“These will provide a new impetus to jobs and investment while strengthening India’s future,” he said.Emphasising governance reforms, the prime minister said, “An important feature of this budget has been our continued stress on trust-based governance. Across sectors, ministries, and processes, we are massively reducing paperwork, decriminalising offences, and reducing compliance requirements. This is because we envisage the state as an enabler, and we trust the citizens. This will have a far deeper impact on people’s lives than the numbers in typical budgets.”He added that his government has built “an inclusive, tech-driven yet human-centric welfare architecture that reaches the last mile and leaves no one behind,” guided by nation-building and economic strengthening.
Long-term vision for ‘Viksit Bharat’
Recalling his Red Fort call — “Yahi Samay Hai, Sahi Samay Hai” (now is the time, the right time), PM Modi said that sense of urgency has evolved into a “national conviction”.“The ‘now is the time’ sense of purpose that you are alluding to has always been there within us. But today, that sense of urgency has become a national conviction, a whole-of-society resolve,” he said.Positioning India in a changing global order, he said the country is operating in a post-pandemic world where nations are keen to partner with it in trade and innovation. He also highlighted India’s young and increasingly skilled population, along with a focus on strong growth accompanied by low inflation and macroeconomic stability.Framing the Budget in long-term historical terms, PM Modi said it should not be seen merely as Budget 2026.“This is the first budget in the second quarter of the 21st century. This budget consolidates the gains made since 2014 and builds upon them to impart momentum for the next quarter-century,” he said.“Just as the decisions and initiatives taken in the 1920s laid the foundation for independence in 1947, the decisions we are taking now are laying the foundation for Viksit Bharat by 2047,” he added.
