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.

This story is from the November 13, 2024 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the November 13, 2024 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESS STANDARDView All
Business Standard

Qcom firms flouting domestic laws: CAIT

Top 3 companies got ₹54K cr FDI but used only ₹1.3K cr lawfully

time-read
1 min  |
November 14, 2024
AI may create 2.73 mn jobs in India by 2028
Business Standard

AI may create 2.73 mn jobs in India by 2028

Amid intense debates over artificial intelligence (AI) and generative AI (GenAI) causing job loss going forward, a study by ServiceNow, in collaboration with Pearson, has projected that AI could actually drive employment growth, creating an estimated 2.73 million jobs in India by 2028.

time-read
1 min  |
November 14, 2024
Business Standard

Child insurance: Waiver of premium can help secure education goal

Vineet Kumar (name changed on request), a 32-year-old Faridabad-based advertising executive, is the father of a one-year-old. While he finds fatherhood fulfilling, he admits to certain anxieties. \"I do sometimes worry about what would happen to my child if I am not around,\" says Kumar.

time-read
2 mins  |
November 14, 2024
More appetite for Swiggy than Zomato in long term
Business Standard

More appetite for Swiggy than Zomato in long term

Brokerages bullish on its shares, give 'buy' rating to stock

time-read
2 mins  |
November 14, 2024
Business Standard

F&O segment gets 45 additions

The stock exchanges on Wednesday announced the addition of 45 stocks in the new list of scrips eligible for trading in the futures and options (F&O) segment, including Zomato, Jio Financial, Paytm, Delhivery, and Avenue Supermarts.

time-read
1 min  |
November 14, 2024
Expansion, operational gains a positive for Hindalco
Business Standard

Expansion, operational gains a positive for Hindalco

Consolidated net sales of Hindalco Industries stood at ₹58,200 crore, up 7 per cent year on year (Y-o-Y) and 2 per cent quarter on quarter (Q-o-Q) in the second quarter of the current financial year (Q2FY25), with better realisations and efficiencies in India.

time-read
2 mins  |
November 14, 2024
Market regulator bats for easing angel fund norms
Business Standard

Market regulator bats for easing angel fund norms

Market regulator Securities and Exchange Board of India (Sebi) may soon allow angel funds to expand the scope of investors by including Hindu undivided families (HUFs), family trusts, and sole proprietorships, among others.

time-read
1 min  |
November 14, 2024
Business Standard

Sebi takes up review of custodian norms

Capital market regulator Securities and Exchange Board of India (Sebi) has proposed measures to ease operations and compliance by custodians — entities which manage foreign portfolio investors (FPIs).

time-read
1 min  |
November 14, 2024
FMCG sector's defensive cloak feels tear of market forces
Business Standard

FMCG sector's defensive cloak feels tear of market forces

The fast-moving consumer goods (FMCG) sector is losing its status as a defensive sector.

time-read
2 mins  |
November 14, 2024
Sebi mulls action for lapses in AI usage
Business Standard

Sebi mulls action for lapses in AI usage

The Securities and Exchange Board of India (Sebi) on Wednesday proposed norms to specify responsibilities on its registered entities like mutual funds, stock brokers and market infrastructure institutions (MIIs) for the use of artificial intelligence (AI) and machine learning (ML) tools.

time-read
1 min  |
November 14, 2024