Finance Minister Nirmala Sitharaman on Tuesday mentioned that capital expenditure has not been lowered. Additionally, precise release beneath Scheme for Particular Help to States for Capital Funding (SASCI) in FY25 is now near funds estimate of ₹1.5 lakh crore and better than revised estimates of ₹1.25 lakh crore.
“There was no cut in the capex of the Central authorities,” she mentioned whereas responding to former Finance Minister P Chidambaram’s criticism. Earlier in the day, he mentioned in a social media submit: “It’s easy arithmetic that the federal government has cut ₹92,682 crore and ₹90,887 crore, respectively, beneath the 2 heads. I requested the explanations for the cut. The Hon’ble FM denied there was any cut! I’m speechless.”
Sitharaman mentioned the previous Finance Minister’s assertions of a cut in capital expenditure was “deceptive” and primarily based on “flawed comparisons”. Funds Estimates (BE) are ready earlier than the monetary yr begins and naturally evolve into Revised Estimates (RE) primarily based on expenditure developments, implementation capability, and rising priorities. “That is commonplace follow in public finance,” she mentioned.
In FY24-25, capital expenditure was influenced by a number of components: the Mannequin Code of Conduct throughout basic elections, excessive climate occasions, and lower-than-expected spending by States and sure central companies. Moreover, many States didn’t submit utilisation certificates, making additional fund releases imprudent. “The revisions weren’t as a consequence of fiscal constraints,” she mentioned.
In accordance with the Finance Minister, a year-on-year comparability exhibits that the capex numbers have risen from BE (23-24) at ₹10.01 lakh crore to BE(24-25) at ₹11.11 lakh crore, displaying a rise of 11.11 per cent. The BE (25-26) for capex stands at ₹11.21 lakh crore, increased than BE 24-25. Equally, the RE (23-24) was estimated at ₹9.50 lakh crore and the RE (24-25) is estimated at ₹10.18 lakh crore, indicating a rise of seven.3 per cent.
Since 2021, outlays for capex by the central authorities have elevated exponentially and it rose from ₹4.12 crore in FY21 to ₹11.2 lakh crore in FY26. Additional, spending on SASCI of FY25 was ₹1.50 lakh crore which was revised to ₹1.25 lakh crore as on February 1, 2025. “I’ve talked about in the Home that the precise releases for SASCI (as of March 26) in FY25 is ₹1,46,362 crore. This is a rise over RE 24-25, what’s there to be ‘speechless’?” she requested.
She mentioned that former Finance Minister’s selective arithmetic and flawed comparisons between BE and RE of the identical yr might serve political rhetoric however do little for knowledgeable public discourse. “The Authorities’s fiscal prudence stands agency, reflective of floor realities and clear fiscal administration, one thing maybe unfamiliar to Shri @PChidambaram_IN ’s from his days in workplace,” she mentioned.
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