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.
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.
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.
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.
RBI report shows states’ capital expenditure was budgeted to grow by 38.4% in FY 22-23, but actual spending registered a year-on-year growth of only 0.9% in Apr-Oct 2022.
States have seen stronger revenues and have been prudent with their expenditure, leading to better deficit ratios. But capex needs to increase & debt needs to reduce.
The government has planned Rs 7.5 trillion ($91.30 billion) in capital expenditure this year, the highest on record, to help crowd in private investment.
Govt ministries & depts told to increase pace of capital spending to boost growth & help create more jobs. Push comes at a time of high retail inflation & rising global interest rates.
States’ capital spending has slowed when compared to previous year. However, it's expected that Centre will provide them funds to spend on infrastructure by way of transfers.
With an educated & skilled workforce, Tamil Nadu has a burgeoning industrial sector which has scored massive investments in automobiles, electronics, and even footwear.
The ‘idea’ Kejriwal's politics grew around was a no-holds-barred fight against corruption. That is the reason Modi govt has now tarred him and his entire party with the same paint.
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