Capex drive may hit Budget hurdle

Compulsion of coalition may force NDA govt to shun Its fiscal fundamental approach

- DIPAK MONDAL

THE Narendra Modi-led government, since it took reins in 2014, has boasted of creating infrastructure at an unprecedented pace. In the first 10 years of his government's tenure, the government has increased allocation to capital expenditure - spendings on creating infrastructure and other productive assets - by over five times.

As finance minister Nirmala Sithraman readies herself to present the full Budget for 2024-25 on July 23, the question that bugs everyone is whether she would make enough provision to help the government maintain the pace of infrastructure spending. In the interim Budget in February, the government had increased the capex allocation by 11% to ₹11.11 lakh crore, which is much lower than the 37% hike in allocation in the previous year. Budget allocation for capex during the past 10 years of the Modi government grew at a compounded annual growth rate of just over 18%.

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