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Finance Minister Nirmala Sitharaman, in her Budget 2024 speech, said that the government will endeavour to maintain strong fiscal support for infrastructure read more
 "FM Sitharaman keeps capex at Rs 11.11 lakh crore or 3.4% of GDP")
Finance Minister Nirmala Sitharaman presenting Union Budget 2024-25. Source: Screengrab/SansadTV
Union Budget 2024: Finance Minister Nirmala Sitharaman kept the India’s FY25 capex outlay unchanged at Rs 11.11 lakh crore – the same as was earmarked in interim Budget 2024 tabled in February.
“This year, Rs 11.11 lakh crore has been allocated for capital expenditure, which amounts to 3.4 per cent of India’s GDP,” the Finance Minister said.
Prime Minister Narendra Modi-led government will end up spending 3.4 per cent of the Budget on capex compared with 3.2 per cent in the previous year, and almost double of what it spent five years ago.
The capex target is, however, higher than the last year’s revised estimate of Rs 9.5 lakh crore.
Sitharaman further said that the government will endeavour to maintain strong fiscal support for infrastructure.
VIDEO | "Infrastructure investment by central government: We will endeavour to maintain strong fiscal support for infrastructure over the next five years, in conjunction with imperatives of other priorities and fiscal consolidation. This year I have provided Rs 11,11,111 crore… pic.twitter.com/xFT70EZmX2
— Press Trust of India (@PTI_News) July 23, 2024The revised estimates for FY24 (2023-2024) estimated capex at Rs 9.50 lakh crore, lower than the previous budgetary estimate of Rs 10 lakh crore. The FY23 revised estimates pegged capex at Rs 7.28 lakh crore.
Capital expenditure means spending on infrastructure such as roads and railways.
For the last fiscal year, India had set a record capex target of Rs 10 lakh crore, a 37.4 per cent increase from the revised budget estimate of Rs 7.28 lakh crore for FY23, which was almost three times of Rs 3.11 lakh crore capital expenditure in FY20 when PM Modi had returned to power for a second consecutive term with a thumping majority in 2019 Lok Sabha elections.
India’s capex in FY21 and FY22 stood at Rs 4.1 lakh crore and Rs 5.9 lakh crore, respectively.
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