March spending push helps Centre meet revised capex target – March spending push helps Centre meet revised capex target BusinessToday

A late-yr spending push helped the Centre meet its revised capital expenditure target of Rs 10.18 lakh crore for fiscal 2024-25, senior authorities officers have instructed Enterprise Immediately TV.

The earlier fiscal yr had begun at a cautious tempo, as fund disbursals have been affected by the mannequin code of conduct that was put in place in the course of the Lok Sabha elections. Capital spending gained vital momentum solely within the second half of the fiscal.

Sources point out the Centre could have ended the fiscal yr with capex above the revised target. The Finances Estimate for 2024-25 capex was pegged at Rs 11.11 lakh crore initially, it was revised later.

This recalibration comes alongside a sharper fiscal deficit target of 4.8% of GDP, in comparison with final yr’s 4.9%. The federal government is aiming for a good decrease deficit of 4.4% within the present fiscal yr. 

For the primary 11 months of fiscal 2024-25, the centre had solely spent Rs 8.12 lakh crore in capex, which meant that March spending would have been larger than Rs 2 lakh crore. 

On asking if authorities would trim down its FY26 target owing to the worldwide headwinds, the official shared that funding is a giant engine of home progress and is unlikely going to be impacted by the worldwide state of affairs. Therefore, authorities is prone to keep on its target of 11.21 lakh crore for FY26 capex.