Govt Capex May Rise 25% In H2

New Delhi: The Central government’s capital expenditure is expected to increase by a robust 25 per cent in the second half of the financial year 204-2025 compared to the same period of the previous year, according to a report by Jefferies.

The report underlined that while populist policies have gained traction in the States, the Centre’s spending priorities show a balanced approach to spur economic growth and create more jobs through an increase in investment in big infrastructure projects.

The report expects total central government expenditure, which includes allocations on social welfare schemes, to rise by around 15 per cent year-on-year in the second half of 2024-25. This shows that the government is keeping up its thrust on big-ticket infrastructure projects to push up the economic growth rate and create more jobs through a higher increase in of 25 per cent in capex (capital expenditure), the report points out.