New Delhi: In the Union Budget 2026, the government made several major announcements aimed at boosting development in poll-bound states such as West Bengal. The focus is clearly on improving infrastructure, transport, employment, and rural industries. These steps are expected to support economic growth and generate jobs in the coming years.
Finance Minister Nirmala Sitharaman said the government will continue to invest heavily in infrastructure, especially in cities and regions that are emerging as new growth centres.
New Freight Corridors and National Waterways
One of the key announcements is the creation of new dedicated freight corridors. A major corridor will connect Dangkuni in the east to Surat in the west. This will improve cargo movement across India and reduce transport costs for businesses.
In addition, the government plans to operationalise 20 new national waterways over the next five years. These waterways will promote environmentally sustainable transport of goods and reduce pressure on roads and railways. This move will also help lower fuel costs and carbon emissions.
Capital Expenditure Raised to Rs 12.2 Lakh Crore
The government has increased capital expenditure to Rs 12.2 lakh crore for the financial year 2026–27. This is one of the highest-ever allocations for infrastructure.
The finance minister said public capital spending has grown sharply from Rs 2 lakh crore in 2014–15 to Rs 11.2 lakh crore in 2025–26. With the new increase, the government aims to maintain strong growth momentum.
Special focus will be given to Tier-2 and Tier-3 cities with populations above five lakh. These cities are seen as future growth hubs and will receive better roads, housing, transport, and digital infrastructure.
Rs 10,000 Crore SME Growth Fund
To support small businesses, the government has announced a dedicated Rs 10,000 crore SME Growth Fund. This fund will help small and medium enterprises expand their operations and create more jobs.
The fund will provide incentives based on certain criteria, such as employment generation, innovation, and productivity. This is expected to benefit startups, manufacturers, and service companies across the country.
Mahatma Gandhi Gram Swaraj Initiative
The government has also launched the Mahatma Gandhi Gram Swaraj Initiative for khadi, handloom, and handicraft sectors. This initiative will provide training, skill development, quality improvement, and global market access.
It will support weavers, village industries, rural youth, and the One District One Product programme. The aim is to strengthen rural livelihoods and promote traditional Indian products globally.
