V Vualnam, Secretary, Department of Expenditure, speaking at Decoding the Budget 2026-2027, in New Delhi, on February 6, 2026. | Photo Credit: BIJOY GHOSH

India’s Union Budget 2026–27 maintains a strong focus on fiscal prudence, infrastructure expansion, domestic manufacturing and social-sector spending, said Expenditure Secretary V Vualnam on Friday.

The Expenditure Secretary was addressing a session at businessline’s post-Budget event ‘Decoding the Budget 2026–27’.

According to Vualnam, the budget framework reflects continued attention to public investment, innovation financing and sectoral allocations.

“Public capital expenditure continues to anchor expenditure patterns, with investments directed toward highways, railways, metro systems, urban infrastructure and shipbuilding,” he said.

“India has been adding roughly 10,000 kilometres of national highways annually and about 3,000 kilometres of railway lines each year, while the metro network has expanded to around 1,000 kilometres.”

Addressing the session, the Expenditure Secretary cited that private capital expenditure is beginning to recover and is expected to complement public spending, particularly in manufacturing and industrial projects.

Besides, the government continues to focus on the Make in India initiative and self-reliance in critical sectors, he said.

Furthermore, Vualnam noted that the budget advances other initiatives such as India Semiconductor Mission 2.0, building on earlier investments to strengthen domestic chip manufacturing capacity.

“The government is prioritising defence production and the development of rare-earth processing corridors,” he said.

A key initiative, according to Vualnam, is the Research, Development and Innovation Fund with an allocation of ₹1 lakh crore, designed to channel long-term concessional financing through professional fund managers and investment platforms.

The structure of this fund, he said, allows private investors and fund managers to select projects independently, thereby enabling a market-driven approach to funding innovation, start-ups and commercialisation-ready technologies.

Apart from investment and manufacturing measures, Vualnam pointed out that allocations to priority sectors have increased.

In addition, Vualnam described the Budget as a balanced framework aimed at strengthening infrastructure, boosting manufacturing, expanding innovation capacity and sustaining social spending, while keeping public finances on a stable path and advancing the long-term goal of Viksit Bharat by 2047.

“Every aspect of our society, every aspect of the needs of the country has been provided — the CAPEX, the manufacturing, the Make in India, defence, and also the social sectors or the various segments of society who require support from the government,” he said.

“We are fully committed, so it’s a well-rounded Budget. It’s a Budget which we are very hopeful will carry us forward, take us to the Viksit Bharat of 2047.”

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Published on February 6, 2026