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Govt to use borrowings for capex, non-inflationary, says Finance Secretary
The Business Guardian
|February 04, 2025
India is using its market borrowings for Capital Expenditure and its Budget is non-inflationary, said Tuhin Kanta Pandey, Finance and Revenue Secretary on Monday.
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"We are borrowing to build capex," Pandey told a post-Budget industry conference organised by FICCI, stressing that it was a non-inflationary budget.
As announced in the Union budget on February 1, the government plans to borrow Rs 15.4 lakh crore from the market.
"Which year you have this situation, your entire borrowing is going into capex. Normally, a lot of your borrowings go into your revenue expenditure. We are borrowing to build capex," Pandey told industry leaders.
He asserted that his explanation stemmed from reports, which stated that the government didn't allocate enough for capital expenditure.
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