New Delhi: The Centre utilized Rs 9,48,506 crore for capital expenditure in FY24, nearly matching the revised estimate (RE) of Rs 9,49,555 crore, accounting for 99.9 percent of the RE, according to government data released on Friday.
Spending increased in September 2023, following the end of the monsoon season, and again in March 2024, coinciding with the onset of the general elections.
India raised its capital expenditure by 42 percent in FY22 and 24 percent in FY23.
For FY25, the interim budget trimmed this growth to 11.1 percent from the budgeted capex in FY24, which had increased by 35.9 percent from the previous year, aligning with the government's fiscal consolidation plan.
The government aims to reduce its fiscal deficit to 5.1 percent in FY25 from 5.8 percent in FY24 (revised estimate).
According to an ET report, India might increase its FY25 capital expenditure outlay by 8-10 percent from the Rs 11.11 lakh crore allocated in the vote on account, due to better-than-expected tax revenue and a record surplus transfer from the RBI to the government.
"Both tax and non-tax revenue are expected to be better," a senior official told ET. "Additional surplus transfer from RBI provides enough headroom to spend more."
On Friday, India reported a GDP growth of 7.8 percent on an annual basis in the last quarter (Q4) of FY24.
The government now estimates the overall growth rate for FY24 to be 8.2 percent.
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