What is the capital expenditure allocation in the Union Budget 2026-27 (B

The Union Budget 2026-27 allocates ₹12.22 lakh crore (commonly rounded to ₹12.2 lakh crore) for capital expenditure in FY27 (BE), which is about 3.1% of GDP. Capital expenditure is spending on long-term assets such as roads, railways and other infrastructure. It has a higher multiplier effect on growth than revenue expenditure. Effective capital expenditure, which also counts grants to states for creating capital assets, is about ₹17.15 lakh crore. Option (a), ₹11.21 lakh crore, was the capex budget estimate for FY26. Option (e), ₹15.41 lakh crore, is the fiscal deficit amount in rupee terms, which makes it a good distractor.