Capex outlay to work as force multiplier: FM

In her reply to Budget discussion, Sitharaman highlights allocation of ₹17 trn for the purpose

- /ASIT RANJAN MISHRA

Finance Minister Nirmala Sitharaman on Wednesday said the allocation of ₹17 trillion towards capital expenditure (capex) will work as a force multiplier and accelerate the Centre’s move towards Viksit Bharat.

“Government's strategy to achieve Viksit Bharat is to provide capital investment in the economy. For that purpose, we have allocated effectively ₹17.15 trillion. This will work as a force multiplier and therefore accelerate our move towards Viksit Bharat,” Sitharaman said while replying in the Lok Sabha to the general discussion on the Union Budget FY27.

While the government has allocated ₹12.22 trillion as capex in FY27, the effective capex including capital-linked transfers to states and central public sector enterprises comes to ₹17.15 trillion, amounting to 4.4 per cent of gross domestic product (GDP).

On the government’s continuous focus on building infrastructure, Sitharaman said the Centre is focussing on not just national highways, but also on waterways so that the cost of logistics in this country can come down.