The government has proposed a sharp increase in the outlay for the Department of Telecommunications, pegging it at Rs 73,990 crore, a jump of nearly 38 per cent over the previous year.

The higher allocation is largely driven by a substantial rise in capital infusion for state-run telecom operator Bharat Sanchar Nigam Ltd (BSNL), as the Centre steps up efforts to strengthen the public sector company.

According to a PTI report, the enhanced allocation will support a range of initiatives, including the rural broadband project BharatNet, BSNL’s capital requirements such as spectrum costs and network rollout, and the company’s internal operational needs. Telecom Minister Jyotiraditya Scindia said the increase reflects the government’s commitment to building a stronger telecom ecosystem while pushing BSNL onto a sustained growth path.

Highlighting the scale of the increase, Scindia said the telecom ministry’s allocation has risen from a revised estimate of about Rs 53,000 crore last year to nearly Rs 73,000 crore now, marking close to a 40 per cent jump. He added that the government is consciously focusing on taking BSNL “from strength to strength” as part of its broader telecom strategy.

Explaining the rationale behind the higher allocation to BSNL, Scindia pointed to improving financial indicators at the PSU. He said BSNL’s average revenue per user (ARPU) has grown by almost 9 per cent, from around Rs 90 to nearly Rs 99, and expressed confidence that it would soon cross the three-digit mark. The minister noted that revenue growth has been recorded across all three of BSNL’s business verticals, creating the need for fresh capital expenditure support alongside internal cash flows to fuel its resurgence.

Scindia also said the proposed incremental Budget includes funding for BharatNet, the flagship rural broadband programme. He referred to allocations covering a wide spectrum of needs, from spectrum provisioning for BSNL to its internal capital expenditure requirements, including towers, media infrastructure and battery systems, adding that the government is pushing on multiple fronts simultaneously.

In addition to telecom, the minister highlighted a significant rise in allocation for the Development of the North East Region. The proposed outlay has increased from a revised estimate of Rs 4,495 crore to Rs 6,800 crore, a jump of nearly 50 per cent. He said the Budget reflects a strong focus on the region, citing initiatives such as the deployment of 4,000 e-buses, the development of five Buddhist circuits across six northeastern states, and enhanced spending on health and education.

The proposed increase in telecom spending underlines the government’s emphasis on infrastructure expansion, digital connectivity and the revival of BSNL, as it seeks to balance public sector strengthening with broader sectoral growth.