Tax cuts to give banks ₹45k cr boost: DFS Secy

Even if direct allocation have not seen major rise in budget, effective capex is ₹15.5L cr, 18% more than FY25

- DIPAK MONDAL @ New Delhi

DISMISSING the criticism over no increase in capex allocation in the Budget, the Department of Economic Affairs (DEA) secretary Ajay Seth has said that there is enough going on capex.

He said even if the direct allocation have not seen significant rise vis-à-vis last year's budget, effective capital expenditure (after including grant in aid for capital assets) is ₹15.5 lakh crore, an 18% growth over last year.

The budget allocation for capex in FY26 is ₹11.2 lakh crore, similar to ₹11.11 lakh crore budgeted in FY25, but a 10% rise over revised estimate of ₹10.2 lakh crore.

Seth, however, said that there is limited space for going up on capex and the attempt going forward is to maintain it relative to GDP.

The effective capex/GDP ratio is 4.3% of GDP, similar to fiscal deficit.