Slowing capex
Business Standard|November 13, 2024
Recognising growth dynamics is necessary instead of changing norms to chase expenditure targets
A K BHATTACHARYA
Slowing capex

A slowdown in the Union government's capital expenditure is not only evident but it has already raised doubts over the achievability of the target of spending ₹11.11 trillion, as budgeted for 2024-25. By way of comfort, however, officials in the Union finance ministry have indicated that the sharp fall in capital expenditure in the first half of the year should be corrected in the second half and annual expenditure could be slightly higher than in 2023-24.

Remember that the Centre's capital expenditure last year was estimated at ₹9.48 trillion, representing a rise of 28 per cent over that in 2022-23. It has been growing at a rapid pace after Covid. In the last four years, it has seen a compound annual growth rate of over 29 per cent, an unprecedented achievement. And this growth was ensured after strictly monitoring expenditure disbursements to ministries and even to states to prevent wastage and misuse. Steps were taken to improve the quality of expenditure by making sure that the central ministries did not bunch up their spending in the last quarter of the year or the states did not substitute their own expenditure with what they were getting from the Centre.

Now, it seems those guardrails are being relaxed to ensure that some growth in capital expenditure is maintained in the current year as well. Senior finance-ministry officials have reportedly stated that curbs under cash-management guidelines could be relaxed in the January-March quarter of 2025. In other words, central ministries and departments could spend more than 33 per cent of their annual capital expenditure estimates in the final quarter this financial year.

Esta historia es de la edición November 13, 2024 de Business Standard.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición November 13, 2024 de Business Standard.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE BUSINESS STANDARDVer todo
A SWEET DEAL
Business Standard

A SWEET DEAL

Bioplastics emerge as another revenue stream for sugar firms, a green one at that. Can the industry balance all the demands?

time-read
4 minutos  |
November 26, 2024
Maha election results fire up PSU stocks
Business Standard

Maha election results fire up PSU stocks

Analysts believe NDA's landslide victory in the state will bring zing back to the markets that have seen some correction recently

time-read
3 minutos  |
November 26, 2024
Adopt online banking, reduce branch visits to minimise vulnerability
Business Standard

Adopt online banking, reduce branch visits to minimise vulnerability

At the recently held State Bank of India Economist Conclave, Finance Minister Nirmala Sitharaman highlighted that while bancassurance has improved insurance penetration, it has also led to mis-selling.

time-read
2 minutos  |
November 26, 2024
Zomato shares zoom on Sensex inclusion
Business Standard

Zomato shares zoom on Sensex inclusion

Shares of Zomato rallied as much as 7.6 percent on Monday, buoyed by the stock's entry into the benchmark Sensex.

time-read
1 min  |
November 26, 2024
RIL shares rise on Citi's 'buy' call
Business Standard

RIL shares rise on Citi's 'buy' call

US brokerage has raised scrip target price to ₹1,530, an upside of over 18%

time-read
1 min  |
November 26, 2024
Business Standard

Godrej Properties to gain from strong land portfolio, demand outlook

Expansion of its development portfolio, brokerage upgrades, and strong outlook have led to a 15 percent gain for the stock of real estate major Godrej Properties (GPL) in six trading sessions.

time-read
2 minutos  |
November 26, 2024
Rupee appreciates 0.2% to 84.29 against dollar
Business Standard

Rupee appreciates 0.2% to 84.29 against dollar

The rupee appreciated by 0.2 per cent against the US dollar on Monday, tracking gains in its Asian peers.

time-read
1 min  |
November 26, 2024
Edelweiss Financial explores minority stake sale in MF unit
Business Standard

Edelweiss Financial explores minority stake sale in MF unit

May value the business at $700-$800 million

time-read
1 min  |
November 26, 2024
Sensex reclaims 80,000 mark
Business Standard

Sensex reclaims 80,000 mark

Maha poll results, MSCI buying underscore gains

time-read
2 minutos  |
November 26, 2024
Politics, culture and performance
Business Standard

Politics, culture and performance

\"All the world's a stage, and all the men and women merely players.\" If we start looking at ourselves as characters who perform, and observe where the stage is, a lot more can start to make sense.

time-read
3 minutos  |
November 26, 2024