60% of capex budget to be spent by Sept: FS

WITH THE ROBUST pace of capital expenditure by the infrastructure ministries, and the interest-free capex loans to the state governments, the Centre will likely spend 60% of the ₹10 trillion capex budget for the current fiscal by September, finance secretary TV Somanathan told FE.

- PRASANTA SAHU

Commenting on the recent surge in inflation, which made the Reserve Bank of India's forecast of average inflation of 6.2% in the current quarter look like an underestimate, the secretary said food inflation is expected to cool by September, as fresh harvest will increase supplies.

The official said the fiscal deficit will be reined in at the targeted level of 5.9% of the Gross Domestic Product (GDP) in FY24, as "revenues at aggregate level" are progressing as per the plan.

"There is a seasonal spike in prices. For those items which are perishable, their price spike was steep. But, the supply response to that was also very fast. It is not like wheat and rice which come (the harvests) only twice a year. The harvest cycle is very fast in items like tomatoes and onions and these are harvested multiple times in a year," Somanathan said.