A late-year spending push helped the Centre meet its revised capital expenditure target of Rs 10.18 lakh crore for fiscal 2024-25, senior government officials have told Business Today TV.
The previous fiscal year had begun at a cautious pace, as fund disbursals were affected by the model code of conduct that was put in place during the Lok Sabha elections. Capital spending gained significant momentum only in the second half of the fiscal.
Sources indicate the Centre may have ended the fiscal year with capex above the revised target. The Budget Estimate for 2024-25 capex was pegged at Rs 11.11 lakh crore initially, it was revised later.
This recalibration comes alongside a sharper fiscal deficit target of 4.8% of GDP, compared to last year’s 4.9%. The government is aiming for an even lower deficit of 4.4% in the current fiscal year.
For the first 11 months of fiscal 2024-25, the centre had only spent Rs 8.12 lakh crore in capex, which meant that March spending would have been higher than Rs 2 lakh crore.
On asking if government would trim down its FY26 target owing to the global headwinds, the official shared that investment is a big engine of domestic growth and is unlikely going to be impacted by the global situation. Hence, government is likely to stay on its target of 11.21 lakh crore for FY26 capex.
