New Delhi: India can spend more than it meets its capital expenditure (capex) target of ₹11.1 lakh crore ($131.72 billion) for fiscal 2024-25, Economic Affairs Secretary Ajay Seth said in an event on Wednesday.
Seth said food prices remain an issue, but apart from this there is no concern about inflation. Retail inflation hit a 14-month high in October, mainly due to rising prices of edible oils, onions and tomatoes.
The Indian government’s infrastructure spending, which is crucial to the country’s fast-growing economy, has slowed this year due to national elections. From April to September, the government spent only 37% of the Rs 11.1 lakh crore target set for fiscal year 2024-25, compared to 49% in the same period last year.
However, Seth also said the government sees no risk to the 6.5-7% economic growth projection for 2024-25. According to another report, the Indian government is considering reducing the quarterly spending limit to meet its capital expenditure target.
