The Budget as a Household Ledger (Why Capex Wins)
India is borrowing mainly to build assets, not to consume—this shifts growth from today’s comfort to tomorrow’s capacity.
Think of the government like a middle-class family.
Daily expenses—food, EMIs, school fees—are non-negotiable. That’s revenue spending.
But the real progress comes when the family buys a house or starts a business. That’s capital spending.
Budget 2026–27 keeps this logic intact. Even while reducing the fiscal deficit to ~4.3% of GDP, the government raises capex to ₹12.2 lakh crore. Roads, railways, defence manufacturing, and freight corridors dominate this spend.
Why does this matter?
Because capital spending creates assets, jobs, and future tax revenue. Over time, it lowers logistics costs, improves productivity, and pulls private investment along.
This is why infra-heavy companies benefit—not by chance, but by design.
NIFTY 500 Stocks Benefiting:
Larsen & Toubro