Budget 2026 Cuts DoT Allocation, Boosts BSNL Capital Support

The Union Budget 2026-27 has allocated ₹73,990.94 crore to the Department of Telecommunications, reflecting a moderation in headline spending even as capital support for the state-owned telecom operator BSNL has been significantly strengthened. The revised allocation highlights the government’s focus on telecom infrastructure revival, particularly through public sector-led expansion.

Lower Than FY26 Budget Estimate, Higher Than Revised Outlay

The Department of Telecommunications allocation for FY27 is 8.65 per cent lower than the Budget Estimate of ₹81,005.24 crore in FY26. However, it represents a sharp 38.56 per cent increase over the Revised Estimate of ₹53,398.17 crore in FY26. The rise over the revised figure is largely driven by higher capital infusion into Bharat Sanchar Nigam Limited to support network expansion and financial recovery.

Additional Support Through USOF

According to Budget documents, the total net allocation for the Department of Telecommunications in FY27 stands at ₹80,927.94 crore. This includes an additional ₹6,937 crore drawn from the Universal Service Obligation Fund. The additional provision will be used for compensation to telecom service providers, the BharatNet rural broadband programme, and research and development initiatives in the telecom sector.

Focus on BSNL Revival and Network Expansion

Union Minister for Communications Jyotiraditya Scindia said the government is working to strengthen BSNL’s financial and operational position. He noted that BSNL’s average revenue per user has grown by nearly 9 per cent, from about ₹90 to ₹99, with the target of crossing the ₹100 mark. The capital infusion, along with internal cash flows, is intended to fund spectrum costs, network rollout, towers, and other infrastructure needs.

Important Facts for Exams

• DoT allocation for FY27 is ₹73,990.94 crore.
• Allocation is lower than FY26 BE but higher than FY26 RE.
• ₹6,937 crore to be met from the Universal Service Obligation Fund.
• BSNL is a key focus area of telecom capital infusion.

BharatNet and Rural Connectivity Push

The minister said the incremental allocation also supports BharatNet, the flagship rural broadband programme. Funds will be used for expanding fibre connectivity, upgrading infrastructure, and meeting BSNL’s internal capital expenditure requirements. The Budget approach reflects a strategy of consolidating public sector telecom capabilities while continuing investments in rural connectivity and long-term digital infrastructure.