
Summary:
The Union Budget for FY26 estimates capital expenditure (capex) at Rs. 11,21,000 crore (US$ 128.60 billion), up 10% from the revised estimate of Rs. 10,18,000 crore (US$ 116.78 billion) for FY25. However, the government is anticipated to fall short of its FY25 target by Rs. 93,000 crore (US$ 10.67 billion). Finance Minister Nirmala Sitharaman underlined the government's commitment to capex, announcing Rs. 1,50,000 crore in state loans.
Elections and the model code of conduct influenced capex growth in H1 FY25. However, CGA figures suggest a 95% increase in capex in December 2024 compared to December 2023. From April to December 2024, 62% of allocated capex was used, down from 67% in FY24. JSW’s Sajjan Jindal stated that although FY25’s investment of Rs. 11,20,000 crore is lower than projected, it still supports key sectors.
Source: IBEF
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