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Fiscal constraints not behind capex revision: Sitharaman
Financial Express Kochi
|April 02, 2025
THE CENTRE'S CAPITAL expenditure (capex) has grown exponentially since FY21 and has increased further in FY25, despite the reduction in the revised estimate due to factors beyond the government's control, such as general elections and extreme weather events.
With government departments already overstretched due to the loss of time during the elections and the post-pandemic surge in public investment, the Centre revised its capex outlay for FY25 to ₹10.2 lakh crore, marking around 8% shortfall from the budget target of ₹11.11 lakh crore. However, this revised estimate (FY25RE) remains 7.5% higher than the ₹9.49 lakh crore allocated in FY24.
For 2025-26, the Centre has pegged capex at ₹11.21 lakh crore, reaffirming its commitment to public capex as a key driver of economic growth.
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