New Delhi: Focus on transport, big boost to defence: A portfolio-wise breakdown of Union Budget 2026-27
Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget 2026–27 on Sunday, announcing major allocations across railways, defence, agriculture, MSMEs, healthcare and infrastructure, alongside key changes in income tax provisions.
Prime Minister Narendra Modi described the Budget as “historic”, calling it a “highway of immense opportunities” that would accelerate India’s Reform Express and strengthen the foundation for a Viksit Bharat by 2047.
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While the transport sector, including the Indian Railway and roadways, had the biggest share earmarked in the Budget, the defence spending got a major boost in this year’s Budget.
In the Union Budget 2026–27, transport sector saw the highest allocation at ₹5,98,520 crore, followed closely by defence at ₹5,94,585 crore. Rural development has been allotted ₹2,73,108 crore, while home affairs gets ₹2,55,234 crore.
Agriculture and allied activities have been allocated ₹1,62,671 crore and education ₹1,39,289 crore. Energy spending stands at ₹1,09,029 crore, with health receiving ₹1,04,599 crore.
Urban development has been earmarked ₹85,522 crore, IT and telecom ₹74,560 crore, and commerce and industry ₹70,296 crore.
Social welfare has been allocated ₹62,362 crore, scientific departments ₹55,756 crore and tax administration ₹45,500 crore.
External affairs has received ₹22,119 crore, finance ₹20,649 crore, while development of the North East has been allotted ₹6,812 crore.
Here is how allocations have been distributed in several sections of the major sectors.
The Budget has earmarked ₹2,77,830 crore for capital expenditure for the Ministry of Railways in FY27, a 10.25 per cent increase over ₹2,52,000 crore in 2025–26 and the highest ever allocation, PTI reported.
The funds will be used for new line construction, rolling stock procurement and infrastructure upgrades. In addition, ₹15,000 crore will be mobilised through extra budgetary resources.
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