The expansion of solar energy has become a strategic priority for governments in order to achieve sustainable economic growth along with energy security, and environmental protection. Solar power adoption in many developing economies is heavily influenced by public policy support, particularly government budgetary allocations. From an economic perspective, budgetary support has crucial role in addressing market failures, reducing investment risks, and stimulating private sector participation in renewable energy projects. This study examines the relationship between government budget allocation for solar power and the growth of installed solar capacity with a specific focus, whether increased public expenditure leads to expansion in solar energy installed capacity. Using secondary data sourced from Union Budget documents, Ministry of New and Renewable Energy (MNRE) annual reports, and official installed capacity statistics, the study analyses trends in public spending on solar energy and corresponding capacity additions over time. The analysis employs descriptive statistics, trend analysis, and simple econometric techniques to assess the direction and strength of the relationship between budget allocation and solar installed capacity growth. The findings indicate a positive association between government budgetary support and the expansion of solar capacity, suggesting that public expenditure has been an effective policy instrument in promoting solar energy deployment. The study concludes that while budgetary allocations impose fiscal costs in the short run, their long-term economic, environmental, and developmental benefits justify continued and well-targeted government support.