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GOVT CONTINUES FISCAL RESTRAINT, BOOSTS CAPEX
The Business Guardian
|March 08, 2026
The government is maintaining fiscal consolidation while prioritising capital expenditure to support infrastructure-led growth, according to the Finance Ministry's Monthly Economic Review for February 2026.
The report said fiscal policy is being calibrated to maintain macroeconomic stability while continuing public investment in infrastructure and productive assets.
“Fiscal policy continues along a consolidation path while maintaining the quality of expenditure,” the review noted, adding that capital spending remains a key instrument for sustaining economic growth.
Highlighting spending trends in the current financial year, the report said capital expenditure grew by 11.2 per cent during April-January of FY26, while revenue spending remained largely contained.
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