📊 Union Budget and Capital Expenditure The upcoming Union Budget on February 1 is expected to be a critical test for the capital expenditure (capex) trade, which has experienced a slowdown over the past year. Fiscal discipline is likely to remain a priority for the government. Consequently, any incremental spending on capital formation is projected to be highly selective rather than a broad-based capex push. Focus areas for additional spending are anticipated to include **defence, railways, and other infrastructure-linked segments.** This points towards a strategic, targeted approach to capital expenditure.