Uptick in capex outlay likely

New Delhi: India's upcoming Federal Budget is likely to step-up spending in FY23 for maintaining the economic growth momentum. According to economy watchers, Budget FY23 will primarily focus on enhancing public capital expenditure as monetary policy support reaches its limitations.

In the previous fiscal, total Capex outlay rose over 30 per cent on a YoY basis to Rs 5.54 lakh crore (Budget Estimate). Besides, fiscal support is necessary at this juncture to ensure that the economy delivers a durable and sustainable GDP growth of 7-to-8 per cent in FY23-24. "Higher spending on infrastructure and construction projects have a positive spin-off on employment and consumption demand," said Suman Chowdhury, Chief Analytical Officer, Acuite Ratings & Research.