India Announces ₹12.2 Lakh Crore Capital Expenditure in 2026 Budget to Spur Growth

Capex: The budget earmarks ₹12.2 lakh crore for capital expenditure, about 4.4% of GDP, targeting roads, railways, renewable energy parks and urban infrastructure, and is projected to generate millions of jobs across sectors.

Home Ministry: Receives ₹2.55 lakh crore to fund internal security, police modernization, disaster response, border security upgrades and cyber‑crime units, with funds scheduled for phased release over the next five years, marking the largest single‑department allocation this year.

Tax Reform: New income‑tax slabs raise the basic exemption to ₹3 lakh, cut the 10% bracket to ₹5‑10 lakh and increase the top rate to 30% for incomes above ₹25 lakh, a move aimed at boosting disposable income for middle‑class families and simplifying compliance.

Filing Deadline: The government extends the deadline for filing revised tax returns, giving taxpayers additional weeks to comply with the updated rules, providing extra time for businesses to adjust accounting systems and for individuals to correct earlier filings, and supporting the rollout of new tax software.