scorecardresearch
Sunday, April 27, 2025
TopicCapital expenditure

Topic: capital expenditure

Budget tries to balance growth with fiscal prudence, but relies on spending cuts over revenue boost

Govt has done well to stick to path of fiscal consolidation. It’s unclear if compression of revenue spends net of interest payments is the direction the govt would like to take in coming yrs.

Slowing capital expenditure is good. Don’t invest in BSNL, save for shortfall instead

The finance ministry should not spend ~0.83 trillion for equity infusion into BSNL. Instead, it should ask the telephone company to raise resources from the market.

7 months into FY25, govt has met just 42% of capex target, low GDP growth puts strain on fiscal goals

Corporate tax collections saw modest growth of just 1.2%, but a 20.2% rise in income tax collections helped strengthen the government's overall revenue position.

Focus on growth dynamics rather than adjusting norms to meet spending targets

Capital expenditure undertaken hastily to meet year-end targets dilutes the quality of the exercise and undermines the economy's benefits from such investment.

Fiscal boost can’t rely on spending cuts alone, Modi govt must consider non-tax measures

If the fiscal deficit was brought down to 5.6% in 2023-24, it was more because of a cut in revenue expenditure than because of growth in tax collections.

Central govt capex at ‘desired level’, onus now on states & pvt sector — Economic Affairs Secretary

Union Budget 2024 allocated Rs 11.1 lakh cr as capex for FY25. This is 11% higher than what was budgeted for FY24 and 17% higher than what was actually spent that year.

States spending better, with many prioritising capex. But those dependent on Centre may face stress

Capital expenditure of 23 states grew by 52% in April-September 2023 over same period last yr, but discontinuation of GST compensation, tapering of grants could weigh down some states.

Centre transfers Rs 1.18 lakh crore of taxes to states

The transfer is a part of monthly shifting of federal taxes to states, but was higher than the normal monthly devolution amount of 591.40 billion rupees, the govt said.

Capital expenditure target of Rs 7.5 lakh crore for FY23 likely to be met: Economic Survey

Finance Minister raised capex by 35.4% to continue the public investment-led recovery of the pandemic-battered economy. Last year, it stood at Rs 5.5 lakh crore.

Budget 2023: Modi govt on track on 2022 capex promises, states lag. Punjab, Bihar repeat offenders

Data shows while states had budgeted a total of a little over Rs 7 lakh cr for capital outlay, only Rs 2.58 lakh cr was spent till Nov 2022. Andhra Pradesh was at bottom among big states.

On Camera

Why Dalit conversion to Buddhism hasn’t taken off, and how it still can

Conversion is framed as a betrayal of the nation, and Dalits who convert are labelled as traitors, tools of foreign influence, or anti-Hindu.

Hints of thaw in US-China tariff war—as Trump says duties to ‘come down’, China open to talks

Trump has expressed optimism about reaching a tariff agreement ‘pretty quickly’, while Xi said that tariff & trade wars undermine the legitimate rights and interests of all countries.

LeT offshoot TRF now distances itself from Pahalgam attack, blames earlier claim on ‘hacking’

TRF denial over Pahalgam attack comes four days after initial claim and just hours after Pakistan Defence Minister Khawaja Asif said LeT was extinct and denied having heard of TRF.

Pakistan ISI is killing Hindus for 45 years. To turn India into a nation at war with itself

At some point, Pakistan’s calculation has been, Hindus will rise in reprisal against their own minorities. That’s a crisis ISI has been conjuring up in India. A nation at war with itself.