What is ₹12.2 lakh crore?
Historical Background
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.
Source Topic
Budget 2026: Balancing Prudence, Growth, and Geopolitical Realities
EconomyUPSC Relevance
Frequently Asked Questions
61. 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.
