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₹12.2 lakh crore

What is ₹12.2 lakh crore?

₹12.2 lakh crore represents the planned capital expenditure by the government in 2026-27. Capital expenditure refers to spending on creating assets like infrastructure, which boosts long-term economic growth.

Historical Background

Increased capital expenditure is a key strategy for governments to stimulate economic growth, especially during periods of slowdown. It creates jobs and improves productivity.

Key Points

10 points
  • 1.

    Represents a significant increase in government spending on infrastructure projects.

  • 2.

    Aims to boost economic growth by creating jobs and improving productivity.

  • 3.

    Includes investments in sectors such as transportation, energy, and communication.

  • 4.

    Will help in improving the country's infrastructure and competitiveness.

  • 5.

    The allocation is subject to parliamentary approval.

  • 6.

Related Concepts

India Semiconductor Mission 2.0Electronics Component Manufacturing Scheme₹10,000 croreBiopharma SHAKTI scheme₹10.9 lakh croreGST₹40,000 crore₹10,000 crore SME Growth Fund

Source Topic

Budget 2026: Balancing Prudence, Growth, and Geopolitical Realities

Economy

UPSC Relevance

Important for UPSC GS Paper 3 (Economic Development, Government Budgeting, Infrastructure). Relevant for questions on fiscal policy, economic growth, and infrastructure development.
❓

Frequently Asked Questions

6
1. What does ₹12.2 lakh crore represent, and why is it significant for the UPSC exam?

₹12.2 lakh crore represents the planned capital expenditure by the government in 2026-27. It's significant for UPSC GS Paper 3 because it relates to Economic Development, Government Budgeting, and Infrastructure. Questions on fiscal policy, economic growth, and infrastructure development are often asked.

Exam Tip

Remember that capital expenditure focuses on creating assets for long-term economic growth. Link this figure to government policies aimed at boosting infrastructure.

2. What is capital expenditure, and how does the ₹12.2 lakh crore allocation aim to boost economic growth?

Capital expenditure is spending on creating assets like infrastructure, which boosts long-term economic growth. The ₹12.2 lakh crore allocation aims to boost economic growth by creating jobs, improving productivity, and enhancing the country's infrastructure and competitiveness.

  • •Creates jobs in construction and related industries.

On This Page

DefinitionHistorical BackgroundKey PointsRelated ConceptsUPSC RelevanceSource TopicFAQs

Source Topic

Budget 2026: Balancing Prudence, Growth, and Geopolitical RealitiesEconomy

Related Concepts

India Semiconductor Mission 2.0Electronics Component Manufacturing Scheme₹10,000 croreBiopharma SHAKTI scheme₹10.9 lakh croreGST₹40,000 crore
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  7. ₹12.2 lakh crore
Other

₹12.2 lakh crore

What is ₹12.2 lakh crore?

₹12.2 lakh crore represents the planned capital expenditure by the government in 2026-27. Capital expenditure refers to spending on creating assets like infrastructure, which boosts long-term economic growth.

Historical Background

Increased capital expenditure is a key strategy for governments to stimulate economic growth, especially during periods of slowdown. It creates jobs and improves productivity.

Key Points

10 points
  • 1.

    Represents a significant increase in government spending on infrastructure projects.

  • 2.

    Aims to boost economic growth by creating jobs and improving productivity.

  • 3.

    Includes investments in sectors such as transportation, energy, and communication.

  • 4.

    Will help in improving the country's infrastructure and competitiveness.

  • 5.

    The allocation is subject to parliamentary approval.

  • 6.

Related Concepts

India Semiconductor Mission 2.0Electronics Component Manufacturing Scheme₹10,000 croreBiopharma SHAKTI scheme₹10.9 lakh croreGST₹40,000 crore₹10,000 crore SME Growth Fund

Source Topic

Budget 2026: Balancing Prudence, Growth, and Geopolitical Realities

Economy

UPSC Relevance

Important for UPSC GS Paper 3 (Economic Development, Government Budgeting, Infrastructure). Relevant for questions on fiscal policy, economic growth, and infrastructure development.
❓

Frequently Asked Questions

6
1. What does ₹12.2 lakh crore represent, and why is it significant for the UPSC exam?

₹12.2 lakh crore represents the planned capital expenditure by the government in 2026-27. It's significant for UPSC GS Paper 3 because it relates to Economic Development, Government Budgeting, and Infrastructure. Questions on fiscal policy, economic growth, and infrastructure development are often asked.

Exam Tip

Remember that capital expenditure focuses on creating assets for long-term economic growth. Link this figure to government policies aimed at boosting infrastructure.

2. What is capital expenditure, and how does the ₹12.2 lakh crore allocation aim to boost economic growth?

Capital expenditure is spending on creating assets like infrastructure, which boosts long-term economic growth. The ₹12.2 lakh crore allocation aims to boost economic growth by creating jobs, improving productivity, and enhancing the country's infrastructure and competitiveness.

  • •Creates jobs in construction and related industries.

On This Page

DefinitionHistorical BackgroundKey PointsRelated ConceptsUPSC RelevanceSource TopicFAQs

Source Topic

Budget 2026: Balancing Prudence, Growth, and Geopolitical RealitiesEconomy

Related Concepts

India Semiconductor Mission 2.0Electronics Component Manufacturing Scheme₹10,000 croreBiopharma SHAKTI scheme₹10.9 lakh croreGST₹40,000 crore

The expenditure will be monitored to ensure that it is used effectively.

  • 7.

    The allocation reflects the government's commitment to long-term economic growth.

  • 8.

    The funds will be used to finance various infrastructure projects across the country.

  • 9.

    The allocation is expected to have a multiplier effect on the economy.

  • 10.

    The increased capital expenditure is expected to attract private investment.

  • •Improves infrastructure for businesses, reducing transportation costs and increasing efficiency.
  • •Attracts foreign investment due to better infrastructure.
  • 3. What are the key provisions associated with the ₹12.2 lakh crore capital expenditure plan?

    The key provisions, as per the concept, include: * A significant increase in government spending on infrastructure projects. * Aims to boost economic growth by creating jobs and improving productivity. * Includes investments in sectors such as transportation, energy, and communication. * Will help in improving the country's infrastructure and competitiveness. * The allocation is subject to parliamentary approval.

    4. How is the ₹12.2 lakh crore capital expenditure plan related to the Union Budget and the Constitution?

    The allocation is part of the Union Budget, which is presented to Parliament under Article 112 of the Constitution. This article deals with the presentation of the budget to the Parliament.

    Exam Tip

    Remember Article 112 is related to the Union Budget presentation in the Parliament.

    5. What are the potential challenges in effectively implementing the ₹12.2 lakh crore capital expenditure plan?

    Potential challenges in implementing the plan include: * Delays in project approvals and land acquisition. * Inefficient project management and execution. * Corruption and leakages in funds. * Lack of skilled manpower.

    6. What is the significance of this ₹12.2 lakh crore capital expenditure in the current economic scenario?

    In the current economic scenario, increased capital expenditure is a key strategy for governments to stimulate economic growth, especially during periods of slowdown. It creates jobs and improves productivity, which are crucial for economic recovery and sustained growth.

    ₹10,000 crore SME Growth Fund

    The expenditure will be monitored to ensure that it is used effectively.

  • 7.

    The allocation reflects the government's commitment to long-term economic growth.

  • 8.

    The funds will be used to finance various infrastructure projects across the country.

  • 9.

    The allocation is expected to have a multiplier effect on the economy.

  • 10.

    The increased capital expenditure is expected to attract private investment.

  • •Improves infrastructure for businesses, reducing transportation costs and increasing efficiency.
  • •Attracts foreign investment due to better infrastructure.
  • 3. What are the key provisions associated with the ₹12.2 lakh crore capital expenditure plan?

    The key provisions, as per the concept, include: * A significant increase in government spending on infrastructure projects. * Aims to boost economic growth by creating jobs and improving productivity. * Includes investments in sectors such as transportation, energy, and communication. * Will help in improving the country's infrastructure and competitiveness. * The allocation is subject to parliamentary approval.

    4. How is the ₹12.2 lakh crore capital expenditure plan related to the Union Budget and the Constitution?

    The allocation is part of the Union Budget, which is presented to Parliament under Article 112 of the Constitution. This article deals with the presentation of the budget to the Parliament.

    Exam Tip

    Remember Article 112 is related to the Union Budget presentation in the Parliament.

    5. What are the potential challenges in effectively implementing the ₹12.2 lakh crore capital expenditure plan?

    Potential challenges in implementing the plan include: * Delays in project approvals and land acquisition. * Inefficient project management and execution. * Corruption and leakages in funds. * Lack of skilled manpower.

    6. What is the significance of this ₹12.2 lakh crore capital expenditure in the current economic scenario?

    In the current economic scenario, increased capital expenditure is a key strategy for governments to stimulate economic growth, especially during periods of slowdown. It creates jobs and improves productivity, which are crucial for economic recovery and sustained growth.

    ₹10,000 crore SME Growth Fund