The Government of India is likely to maintain the traditional February 1 date for presenting the Union Budget, according to sources who spoke to CNBC-TV18. This decision reflects the government's intention to continue with the established schedule for the annual financial presentation, even as official announcement on the dates of the Budget Session of Parliament is still awaited.

Budget Preparation Timeline

According to sources, preparations for the annual financial exercise are proceeding on the assumption that the finance minister will present the Budget on the customary date. Any deviation from February 1 is seen as unlikely at this stage, despite the absence of a formal notification from the Parliamentary Affairs Ministry.

Weekend Presentation Precedent

Presenting the budget on a weekend would not be unprecedented for the government. In recent years, the Union Budget has been tabled on non-working days to avoid disruption to financial markets. The budget for 2020-21 was presented on Saturday, February 1, establishing a precedent for weekend presentations when the date falls on a non-working day.

Parliamentary Session Coordination

The budget session dates are typically announced by the Parliamentary Affairs Ministry closer to the session, following consultations with key stakeholders. An official confirmation regarding the exact dates is expected in the coming days, which will provide clarity on the parliamentary schedule for the upcoming budget session.

Significance for Stakeholders

Maintaining the February 1 date allows adequate time for budget preparations and ensures that financial proposals can be implemented effectively from the beginning of the fiscal year. The Union Budget serves as a key policy document outlining the government's fiscal priorities, expenditure plans, and reform roadmap for the upcoming financial year.

The predictable timing of the budget presentation allows financial markets, businesses, and investors to prepare for potential policy announcements and fiscal measures. This consistency in scheduling helps maintain stability in market expectations and planning cycles for various economic participants.

The Government of India's infrastructure investment momentum is set to continue with ICRA projecting capital expenditure targets of ₹13.1 trillion for FY27. This represents a substantial 14% increase from the anticipated ₹11.5 trillion capex spending expected in FY26, underlining the government's commitment to infrastructure development across multiple sectors.

Strong Capital Expenditure Performance

The government's capital outlay performance has shown remarkable consistency and growth. Key financial metrics demonstrate this upward trajectory:

During FY19-FY26, the capital outlay witnessed a robust CAGR of around 20.3%, primarily driven by significant allocations in road, railways, and defence sectors. The actual capex undertaken during April-November 2025 increased by 28.2% to ₹6.6 trillion, representing 58.7% of FY26 Budget Estimate, compared to ₹5.1 trillion during the same period in 2024.

Sector-Wise Capital Allocation Trends

Roads Infrastructure

The road sector continues to dominate government capex allocation, maintaining its position as a priority infrastructure segment:

The Ministry of Road Transport and Highways allocation increased more than eight times from FY14 to FY26 BE. Roads and highways have consistently accounted for around 25% of budgetary allocation over the past five years. Till November 2025, the Ministry spent ₹1.8 trillion, representing 66% of capital allocation for FY26 BE, with expectations to spend around ₹1 trillion during the remaining period.

Railways Development

Railways capital outlay reached a historic high of ₹2.65 trillion in FY26 BE, including extra budgetary resources via PPPs. The focus areas for railway infrastructure include:

• Capacity Augmentation: New routes, gauge conversion, track doubling, and dedicated freight corridors
• Infrastructure Modernisation: Rolling stock upgrades and station redevelopment
• Safety Enhancements: Accelerated deployment of Kavach 4.0 automatic train protection system
• Economic Corridor Development: Ports and mineral logistics connectivity

Power Sector Investments

The power sector allocation focuses on grid resilience and renewable energy integration. Key investment areas include:

• Energy Storage Systems: Battery energy storage systems and pumped hydro projects with viability gap funding
• Transmission Infrastructure: Interstate systems and green energy corridors through HVDC lines
• Distribution Reforms: Enhanced funding under Revamped Distribution Sector Scheme and smart metering initiatives
• Manufacturing Incentives: Grid-scale batteries and solar module manufacturing ecosystem support

Future Outlook and Constraints

ICRA expects the government to enhance capex allocation by around ₹250 billion in FY26, taking it to ₹11.5 trillion versus the BE of ₹11.2 trillion. However, post-FY27, the scope for further capex expansion may narrow due to fiscal rigidities expected from FY28, primarily on account of the 8th Pay Commission.

The rating agency anticipates a sizeable increase in the outlay under the scheme for special assistance as loans to states for capital expenditure, from the budgeted amount of ₹1.5 trillion in FY26, thereby supplementing overall states' expenditure. This comprehensive approach combining adequate budgetary allocation, planned asset monetisation, and long-term financing is expected to provide the requisite stimulus for future infrastructure investments.