Team Blitz India
NEW DELHI: The Government has allocated a larger portion of the Interim Budget to construct long-term assets such as roads and railways than has been witnessed in 30 years.
Capital expenditure’s share is anticipated to be 23.3 per cent, according to the budget estimates for Financial Year 2024-25 (FY25). It is the highest allocation since FY95 Budget, when it was at 24 per cent. The absolute figure for capital expenditure of Rs 11.1 trillion is the highest ever recorded, continuing the increasing trend observed in recent years, according to data from the Centre for Monitoring Indian Economy (CMIE) and budget document,
Capital expenditure funds create long-term assets like roads and railways, while revenue expenditure covers costs such as salaries and other routine expenses.
“Building on the substantial tripling of the capital expenditure outlay in the past four years, resulting in a significant multiplier effect on economic growth and job creation, the outlay for the next year is being increased by 11.1 per cent… or 3.4 per cent of the Gross Domestic Product,” said Finance Minister Nirmala Sitharaman in her Budget speech.
