- By Aditya Pratap Singh
- Tue, 23 Jan 2024 02:58 PM (IST)
- Source:JND
Budget 2024: To boost economic growth, the union government is expected to maintain momentum in the upcoming interim budget by increasing capital expenditure, especially in the infrastructure sector.
The ICRA, in its pre-budget expectation, said, "We estimate Government of India to budget for a capex of ₹10.2 lakh crore in FY25, implying a relatively sedate YoY expansion of about 10 per cent, compared to over 20 per cent expansion seen in each of post-COVID years. The slowdown in capex growth is likely to have some bearing on economic activity and GDP growth"
During April-November of the current financial year, capitalization increased by 31% to ₹5.9 lakh crore (58.5% of FY2024 BE), from ₹4.5 lakh crore ₹ in April-November of FY23.
Also Read: Strong Debut: Maxposer Limited Shares Lists At 339% Profit Against IPO Price
The union government had made a record provision of Rs 10 lakh crore for capex in the current financial year. For the financial year 2020-21, the government had allocated Rs 4.39 lakh crore. The same was increased by 35 per cent to Rs 5.54 lakh crore next. Further, it was increased by 35% to ₹7.5 lakh crore in FY 2022-23, followed by a 37.4% increase to a high of Rs 10 lakh crore.
Amid the high economic growth, capital spending contracted in October 2023, then increased to a modest 1.6 per cent in November 2023.
Post-Covid-19, particular emphasis has been placed on investments in the budget. This triggered a downward spiral for the economy. As a result, India has grown by more than 7 per cent over the past three years, the highest among the world's major economies.
In recent times, private investments have resumed in certain sectors such as steel, cement and oil.
Also Read: Groww App Glitch: 'Issue Resolved' Groww Team Informed Users
