Capex spends may not see sharp rise

Most analysts expect the capex allocation to rise by 10-12% over the actual capex in FY25

- DIPAK MONDAL @ New Delhi

Mansukh Mandaviya, Minister of Labour and Employment, recently said India must increase allocation for infrastructure spending to ₹15 lakh crore from the present ₹11.11 lakh crore.

However, given the fiscal constraints and the likely inability of the government to fully spend the ₹11.11 lakh crore allocation for capital expenditure (capex) in the current financial year, it is unlikely that the government may hike the capex allocation much in the coming budget.

Most analysts expect the capex allocation to increase by 10-12% over the actual capex in FY25.

Analysts have projected the capex allocation for FY26 in the budget to be at the same level as was budgeted for the current financial year - ₹11.11 lakh crore.