The central government will spend ₹ 10 trillion (Rs 10 lakh crore) on longer term capital expenditure in 2023/24, extending a strategy adopted to revive growth in the aftermath of the Covid crisis.

The allocation is higher than the ₹ 7.5 trillion (Rs 7.5 lakh crore) budgeted in the previous year and the highest on record.

The year-on-year increase of 33% is only marginally lower than last year's 35% jump.

The ratio of capex-to-GDP, which rose to 2.7% in 2022/23, is estimated at 3.3% in the new financial year, Finance Minister Nirmala Sitharaman said.

The government will also continue a ₹ 1.3 trillion long-term loan to states for longer term investments, the minister said.

Source NDTV

BDST: 1504 HRS, FAB 01, 2023
MSK