Budget 2024: Government Raises Capex Outlay To Rs 11.11 Lakh Crore

The government's capital expenditure for FY25 is pegged at Rs 11.11 lakh crore, Finance Minister Nirmala Sitharaman said in her budget speech on Thursday. That compares with Rs 10 lakh crore, or 3.3% of GDP, in FY24. It is estimated to grow at 3.4% of GDP.

The revised budget estimate of capital expenditure for FY24 is Rs 9.4 lakh crore, according to the budget document presented by the Finance Minister.

The capital expenditure outlay for the next fiscal will be up 17%.

The capital expenditure by the government in the past four years has resulted in "huge multiplier impact on economic growth and employment creation", Sitharaman said.

The Union government has continued to prioritise capex in order to push investments and improve the quality of expenditure to support growth.

Capex spending has aided overall investment growth in recent years, helping crowd in private investments. While the focus on capex continues, it is at a slower pace than what has been seen in the last few years, given the medium-term fiscal consolidation path of the central government.