Union Finance Minister Nirmala Sitharaman and Finance MoS Pankaj Chaudhary.
Credit: PTI File Photo
New Delhi: The central government is hopeful of achieving the Rs 11.11 lakh crore capital expenditure (capex) target in the current financial year as projected in the Union Budget, despite slow progress during the first six months of the year, Minister of State for Finance Pankaj Chaudhary said on Friday.
“All ministries should meet their targets for capex by the end of the fiscal. We are hopeful that the target for capex in the current financial year will be met,” he said at a media briefing.
In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman has set a target of Rs 11.11 lakh crore capital expenditure for FY25, which is 11.11% higher than the previous year’s budgetary target.
In the first half of the fiscal the government’s capex was sharply below the target largely due to the Lok Sabha election related restrictions during April-June quarter. Analysts expect the capex undershooting the budgeted amount by at least Rs 1 lakh crore.
On the capex for the next fiscal year, Chaudhary said there has been consistent increase in the past three-four years and a decision will be taken in the budget taking into consideration the requirements.
The minister pointed out that the central government’s capital expenditure has more than doubled from around Rs 5 lakh crore in 2021-22 to Rs 11.11 lakh crore in 2024-25.
“The focus of the Modi Government is on building infrastructure. India's road, air and rail connectivity has improved considerably over the last 10 years," he said.