Budget 2026: Telecom Outlay Jumps to ₹73,990 Crore, Big Boost for BSNL and BharatNet

The Union government has proposed a telecom ministry outlay of ₹73,990 crore in Budget 2026, marking a sharp increase over last year’s allocation. The higher spending is primarily driven by a substantial rise in capital infusion for state-run telecom operator BSNL, alongside continued funding for major connectivity initiatives such as BharatNet.

Telecom Minister Jyotiraditya Scindia said the enhanced allocation will support a wide range of requirements, including spectrum costs, network rollout, infrastructure expansion, and internal operational needs of BSNL.

Nearly 40% Jump in Telecom Allocation

Highlighting the scale of the increase, 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”.

The proposed outlay reflects the government’s broader strategy to strengthen public digital infrastructure, improve rural connectivity, and revive BSNL as a competitive telecom player.

Government Push to Strengthen BSNL

Explaining the rationale behind the higher allocation for BSNL, Scindia said the government is focused on accelerating the PSU’s turnaround.

“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.

The funding will support BSNL’s ongoing 4G and upcoming 5G network expansion, tower upgrades, and technology modernisation, helping the operator compete more effectively with private players.

Funds Earmarked for BharatNet and Spectrum Needs

The Telecom Minister said the incremental Budget allocation also includes provisions for BharatNet, the government’s flagship rural broadband project aimed at connecting villages with high-speed internet.

“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.

BharatNet remains a critical pillar of the Digital India programme, enabling e-governance, digital payments, online education, and telemedicine in rural and remote areas.

Higher Allocation for North East Region Development

Scindia also pointed to a significant rise in funding for the Development of the North East Region, which saw its allocation increase from a revised estimate of ₹4,495 crore to ₹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.

The higher allocation aligns with the government’s push to improve infrastructure, connectivity, and socio-economic development in the strategically important region.

Why Budget 2026 Telecom Spending Matters

BSNL Revival Strategy

The increased CAPEX support aims to strengthen BSNL’s balance sheet, expand coverage, and improve service quality.

Rural Connectivity Push

Higher funding for BharatNet will accelerate last-mile internet access across villages and underserved regions.

Digital Economy Growth

Improved telecom infrastructure is key to supporting India’s fast-growing digital economy, fintech adoption, and data consumption.

Conclusion

Budget 2026 marks a decisive push to strengthen India’s telecom backbone, with a sharply higher allocation of ₹73,990 crore reflecting the government’s long-term digital ambitions. The significant capital infusion for BSNL, alongside sustained funding for BharatNet and spectrum and network expansion, signals a clear focus on improving connectivity, boosting rural broadband access, and reviving the state-run operator’s competitiveness. With additional emphasis on the North East’s development, the Budget underscores telecom as a key enabler of inclusive growth, digital services expansion, and India’s broader Digital India vision.