Government Raises Capex Target by 36% to Rs 10 Lakh Crore for FY24
Government Aims for Higher Capital Expenditure
The Indian government has set a capital expenditure (capex) target of Rs 10 lakh crore ($134 billion) for the current fiscal year, representing a significant 36% increase from the previous year’s target. An anonymous official revealed that more than half of this amount had already been spent by the end of October.
Progress and Ambitions
Last fiscal year, the government fell slightly short of its target, spending Rs 7.36 lakh crore compared to the Rs 7.5 lakh crore goal. Between April and August 2023, approximately 37.4% of the budgetary capex was utilized. The official expressed confidence in achieving the fiscal deficit target of 5.9% GDP and following a glide path to reduce it to under 4.5% by FY26.
Revenue and Expenditure Figures
As of August, revenue receipts totaled Rs 10.13 lakh crore, accounting for 39% of the budget estimates. Expenditures amounted to Rs 13 lakh crore, representing 37% of the budget estimates.
Pre-budget consultations with various ministries began in October, with discussions on a total of 102 demands expected to conclude by mid-November. The government’s coffers have been substantially boosted by the Mahila Samman Savings Scheme and Senior Citizens Scheme, contributing Rs 13,512 crore and Rs 74,675 crore respectively by the end of September. The latter represents a significant 160% annual increase from last year’s collections.
Borrowing Plans and Financial Outlook
Despite the boost in small savings, the government has decided to stick to its borrowing plan for FY24, announcing a borrowing amount of Rs 6.55 lakh crore or 42.45% of the total Rs 15.43 lakh crore budgeted for the second half of the year.
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