Union Budget 2026–27 Shifts Focus to Execution and Asset Monetisation: PwC India
Commenting on the Union Budget 2026–27, Manish Sharma, Sector Leader – Infrastructure, Transport and Logistics, PwC India, said the government has signalled a shift from sharp increases in capital expenditure to improving execution and project delivery.
He noted that after a cumulative capex increase of over 30% between FY23 and FY25, growth has moderated to around 11% in FY26 and about 9% in FY27, indicating a transition towards consolidation and efficient utilisation of funds. According to him, initiatives such as the proposed partial credit guarantee mechanism are timely, particularly as a larger number of new project developers enter public-private partnership (PPP) projects. He added that such mechanisms must address lender concerns proactively and function before defaults occur to support financial closures, especially for user charge-based PPP projects such as toll roads.
Sharma also welcomed the announcement of seven new high-speed rail corridors and Dedicated Freight Corridors (DFCs), but stressed that their success would depend on firm and irrevocable commitments from state governments on land acquisition, last-mile connectivity and security to ensure time-bound execution.
Highlighting asset monetisation, he said the proposal to create REITs for surplus CPSE land is a long-pending reform that could unlock significant value if implemented effectively. He further said the focus on developing domestic capabilities in construction equipment, infrastructure equipment and container manufacturing would help reduce supply chain vulnerabilities affecting infrastructure development and trade.
Sharma added that the creation of City Economic Regions (CERs) is a positive step towards managing the rapid growth of Tier-2 and Tier-3 cities. However, he noted that the initiative would require parallel reforms, including inclusion of peri-urban areas within municipal limits, integration of industrial clusters into city planning, and expansion of reliable municipal services to fully realise its potential.
