Govt not shifting focus from capex: Sitharaman

Finance Minister Nirmala Sitharaman on Monday clarified that the massive income tax relief given in Budget 2025 doesn't mean that the government has shifted focus to consumption from capital expenditure.

- TDG NETWORK MUMBAI

MUMBAI

Keeping people earning up to Rs 12 lakh annually out of the income tax ambit has triggered a debate that the government has shifted focus to boosting consumption after the two consecutive quarter GDP figures showed tepid growth.

At a post-budget interaction with stakeholders in Mumbai, finance minister Sitharaman said there is no reason for people to think that the emphasis has shifted from capital expenditure to consumption, as she spelt out the consistent rise in capital spending provisions over the past few years.

She supplemented that the broad picture is that the government's emphasis since COVID remains on public expenditure for building capital assets.