Budget 2026: Govt proposes Rs 73,990 crore outlay for telecom, big push for BSNL and BharatNet
The government proposes a Rs 73,990 crore outlay for the telecom ministry, driven by higher capital infusion for BSNL and funding for projects like BharatNet.
The government has proposed to increase the outlay for the telecom ministry to Rs 73,990 crore, largely due to a significant rise in capital infusion for state-run telecom firm BSNL. The increased allocation will be used for various projects, including BharatNet and BSNL’s capital requirements, such as the cost of spectrum, network rollout, and internal operational needs, Telecom Minister Jyotiraditya Scindia told.
Nearly 40 per cent jump in telecom allocation
Highlighting the rise in allocation, the minister said:
“We have seen a very healthy increase in allocation from the revised estimate of last year—Rs 53,000 crore for telecom—to Rs 73,000 crore. That’s almost a 40 per cent increase”.
Government push to strengthen BSNL
Explaining the higher allocation, particularly for BSNL, Scindia said the government is focused on strengthening the state-run telecom operator.
“Our ARPU grew by almost 9 per cent from Rs 90 to nearly Rs 99. We would like to touch three digits soon. We have grown revenue across all three verticals, and now we need this injection of CAPEX along with our internal cash flows to take BSNL on its path of resurgence,” he said.
Funds for BharatNet and spectrum requirements
The Telecom Minister said the proposed incremental Budget includes funds for the rural broadband project BharatNet.
“There are multiple areas we are addressing—from BharatNet to spectrum allocation for BSNL and its internal CAPEX requirements, whether towers, media, or batteries. We are trying to fire on all cylinders,” Scindia said.
Higher allocation for North East Region Development
Scindia also noted a sharp increase in allocation for the Development of the North East Region, from a revised estimate of Rs 4,495 crore to Rs 6,800 crore, representing nearly a 50 per cent jump.
“The North East has received significant focus in this Budget, from urbanisation initiatives such as 4,000 e-buses and five Buddhist circuits across six states, to increased emphasis on health and education,” he said.
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