The Indian Government's Push for Increased Capital Expenditure
With the current fiscal year nearing its end, the Indian government is focusing on significantly boosting capital expenditure (capex) to achieve its ambitious target of Rs 11.1 lakh crore. This push is crucial for maintaining the country's growth momentum.
The government is reviewing capital spending by various ministries and departments. Additionally, it is considering measures like partially relaxing the expenditure ceiling for the final quarter of the fiscal year. This demonstrates the government's commitment to achieving its capex target.
The current fiscal year is unique due to the general elections, which limited the sanctioning of new projects under the Model Code of Conduct. However, the government remains optimistic about achieving its target. Discussions are ongoing to ensure continued capex, and several ministries have already exceeded 50% of their target.
The government is also encouraging states to increase their capex. Additionally, it may review the quarterly expenditure caps, particularly the last quarter ceiling, to avoid bunching of expenditures. This flexibility will allow ministries to utilize funds effectively and achieve their targets.
Overall, the government's focus on increased capex is a positive step towards maintaining India's economic growth. The ongoing efforts and collaboration between the central and state governments are crucial for achieving this goal.