The government expects the CAPEX FY26 to exceed estimates: sources of the Ministry of Finance
The government is optimistic about its capital expenditure plans (CAPEX) for fiscal year 26 and expects the allocation for the current financial year to exceed the initial estimate of RS 11.21 Lakh Core, sources from the Ministry of Finance in Business TVy TV said.
CAPEX in the first two months of fiscal year 26 (April-May) increased by 54% in annual sliding to Rs 2.21 Lakh crores, against 1.44 RS driving in the same period last year.
This represents 19.7% of the total budgetary CAPE of RS 11.21 Lakh crores for the year, reflecting the government’s strategy for front loading expenses to stimulate economic demand.
The strong momentum in the first three months of fiscal year 26 also raised expectations that the annual CAPEX could surpass the previous projections.
When they were asked for possible concerns, if necessary, the manager said that India should focus on stimulating manufacturing and creating new investment opportunities via public and private CAPEX to maintain its path of economic growth.
“The private capex remains a concern and must be pushed further,” added the official.
On the global challenges, the manager noted that current trade tensions are unlikely to derail the tax trajectory of India. Instead, they have the opportunity for the government to intensify spending and accelerate growth.
The CAPEX went to Rs 10.52 Lakh crosses during fiscal year 25, exceeding the annual target of 3.3%.
According to the latest Union budget, India remains determined to reduce its budget deficit to 4.4% of GDP during fiscal year 26, although the government can lower it to around 4.2 to 4.3%.
