Interim Budget 2024: Govt makes 11% hike in capex to Rs 11.11 Lakh crores
The govt had hiked capex by 37.5% to Rs10L cr for the current fiscal. Against this, the government expects to spend Rs9.5L cr in the financial year ending Mar 2024
On the rise
- Rs4.39L cr in 2020-21
- Hiked 35% to Rs5.54L cr in 2021-22
- Increased 35% to Rs7.5L cr in 2022-23
- Rose 37.4% to Rs10L cr in 2023-24
- Hiked 11% to Rs11.11L cr for 2024-25
New Delhi: Finance Minister Nirmala Sitharaman on Thursday made a modest increase of 11 per cent in capital expenditure (capex) to Rs11.11 lakh crore for the next financial year as private investment picks up. The government had hiked capex by 37.5 per cent to Rs10 lakh crore for the current fiscal. Against this, the government expects to spend Rs9.5 lakh crore in the financial year ending March 2024.
In the previous two years as well the government had to increase the capex for infrastructure development by over 30 per cent to do heavy lifting as private investment was muted. “Now that the private investments are happening at scale, the lower borrowings by the central government will facilitate larger availability of credit for the private sector,” she said while presenting the Interim Budget 2024-25.
With the growth in the economy, there has been a pick-up in private investment in recent times. “Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 per cent to Rs11,11,111 crore. This would be 3.4 per cent of the GDP,” she said.
