WITH HALF A dozen states going to assembly elections by 2023-end, the Union government has asked all ministries to accelerate capital expenditure and spending on Centrally Sponsored Schemes (CSS). A similar advisory has also been issued to the Central Public Sector Enterprises (CPSEs) and departmental undertakings, including Railways and the National Highways Authority of India.
The idea is to maximise spending in the first half of the year so that at least 50% of annual budget capex is implemented by September-end and 75% by December-end. In the last fiscal year, these figures were 45.7% and 65.4%, respectively.
The Centre has raised the capex target by 36% on-year to ₹10 trillion (including ₹1.3 trillion capex loans to states) for FY24 from ₹7.36 trillion (including ₹81,200 crore to states) in FY23, to continue the public investment-led economic recovery.
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