FM Sitharaman maintains capex at Rs 11.11 lakh crore or 3.4% of GDP

Union Budget 2024: Finance Minister Nirmala Sitharaman maintained the India’s FY25 capex expense the same at Rs 11.11 lakh crore– the like was allocated in acting Budget 2024 tabled in February.

“This year, Rs 11.11 lakh crore has been allocated for capital expenditure, which amounts to 3.4 per cent of India’s GDP,” the Finance Minister stated.

Prime Minister Narendra Modi- led federal government will certainly wind up costs 3.4 percent of the Budget on capex compared to 3.2 percent in the previous year, and virtually dual of what it invested 5 years back.

The capex target is, nevertheless, more than the in 2015’s changed quote of Rs 9.5 lakh crore.

Sitharaman better stated that the federal government will certainly endeavour to preserve solid monetary assistance for facilities.

VIDEO CLIP|”Infrastructure investment by central government: We will endeavour to maintain strong fiscal support for infrastructure over the next five years, in conjunction with imperatives of other priorities and fiscal consolidation. This year I have provided Rs 11,11,111 crore… pic.twitter.com/xFT70EZmX2

— Press Trust of India (@PTI_News) July 23, 2024

The revised estimates for FY24 (2023-2024) estimated capex at Rs 9.50 lakh crore, lower than the previous budgetary estimate of Rs 10 lakh crore. The FY23 revised estimates pegged capex at Rs 7.28 lakh crore.

Capital expenditure means spending on infrastructure such as roads and railways.

For the last fiscal year, India had set a record capex target of Rs 10 lakh crore, a 37.4 per cent increase from the revised budget estimate of Rs 7.28 lakh crore for FY23, which was almost three times of Rs 3.11 lakh crore capital expenditure in FY20 when PM Modi had returned to power for a second consecutive term with a thumping majority in 2019 Lok Sabha elections.

India’s capex in FY21 and FY22 stood at Rs 4.1 lakh crore and Rs 5.9 lakh crore, respectively.