New Delhi, July 23: Finance Minister Nirmala Sitharaman maintained India’s FY25 capital expenditure (capex) outlay at Rs 11.11 lakh crore, consistent with the Interim Budget allocation from February. This figure represents an increase from last year's revised estimate of Rs 9.5 lakh crore.
Sitharaman highlighted that the government plans to allocate 3.4% of the Budget towards capex, up from 3.2% the previous year, nearly double the expenditure of five years ago. In FY24, government capital expenditure amounted to Rs 9.5 lakh crore, marking a 28.2% year-on-year increase and standing at 2.8 times the level of FY20.
According to the Economic Survey, private sector capital expenditure has also shown growth in the recently concluded financial year compared to FY23. Gross Fixed Capital Formation (GFCF) continues to play a crucial role in driving economic expansion, evidenced by its increasing share of nominal GDP.
