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10.23 Pc Capex Hike In Budget 2025-26 Shows Infrastructure Remains A Priority: FM Sitharaman

OMMCOM NEWS by OMMCOM NEWS
February 2, 2025
in Business
Finance Minister Nirmala Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman told NDTV in a post-budget interview that the Government’s focus has been on capital expenditure (capex) in the last few years, and now it has also given a huge boost to increasing consumption.

“A rise in capex by 10.23 per cent in comparison to RE (revised estimate)) of 2024-25 takes it to over Rs 11.21 lakh crore. That is not an ordinary thing… Repeatedly, public expenditure on asset building has reached such a level that 10.23 per cent growth also seems ordinary,” she told NDTV’s Editor-in-Chief Sanjay Pugalia.

“Our emphasis on capex has not reduced. We are also giving states interest-free capex funds,” she pointed out.

Sitharaman emphasised that spending on infrastructure remains a priority. The government spending on capex is projected to be 4.3 per cent of GDP this year, with an expected fiscal deficit of 4.4 per cent in the coming year, she added.

Since the COVID-19 pandemic, the Government has been increasing capex by 10-15 per cent to such an extent that it announced capex of Rs 11.11 lakh crore last year. The Finance Minister said it would not be correct to say the Union Budget 2025 was lukewarm on capex.

She also said the Government has not shifted only towards consumption, rather it is taking along consumption and adding to the overall growth numbers.

“If you want growth, if you need instruments and triggers — like how we spent capex in the last five years keeping in mind the multiplier effect to grow the economy — then a consumption boost is also needed. However, our first priority was to ensure we recognise honest taxpayers,” Sitharaman told NDTV.

She said that the Government has created a balance between strengthening the foundation of a ‘Viksit Bharat’ and equally focusing on key sectors like health, nutrition and education through welfare schemes.

(IANS)

Tags: Budget 2025-26Finance Minister Nirmala SitharamanFM SitharamanNDTVNirmala Sitharaman
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