Continuity in capital expenditure is to keep momentum in India's growth: Sitharaman
Feb 15, 2023
New Delhi [India], February 15 : The continued push on infrastructure building through higher capital expenditure allocation is to keep India's economic growth momentum intact, said Union finance minister Nirmala Sitharaman on Wednesday.
She made the remarks while participating in a post-Budget interactive session with the industry body PHD Chamber of Commerce and Industry (PHDCCI) here.
The central government is ensuring that the public expenditure continues to grow to have a desired multiplier effect on all the sectors, she said.
"The momentum on growth should not be relaxed or diluted, if anything, there should be greater ascent for that growth which we want to sustain at a good level," she added.
Capital investment outlay is being increased steeply for the third year in a row by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. This will be almost three times the outlay in 2019-20.
The capex allocation has grown four times since 2015-16, from Rs 2.5 lakh crore to Rs 10 lakh crore (budget estimate for 2023-24).
"For the last 3-4 years, there has been a consistent emphasis on public capital expenditure, such as in last year's budget, and this year's budget has seen a 30 percent increase in capital expenditure. This is the first time in many years that the capital expenditure has reached a double-digit amount, making it the clear focus of this budget," she added.
Speaking about her Budget speech, which was 87 minutes in duration, she said the idea was to keep it "clear and simple".
Later in her address, speaking about fiscal discipline, she said the government is aligned with its roadmap.
"I must congratulate the entire ministry for ensuring that the budget which is fiscally responsible but very clear on the target that the growth has to be momentum," she added.
The fiscal deficit has steadily declined from 7.3 per cent in 2020-21 to 5.9 per cent budgeted for 2023-24. In 2022-23, it was pegged at 6.4 per cent.
In her Budget speech, she reiterated the government's intention to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26.
