Record Capital Expenditure: Govt's Economic Growth Strategy

Union Finance Minister Nirmala Sitharaman announced an effective capital expenditure of Rs 15.02 lakh crore for the fiscal year, aiming to sustain economic growth with high capital spending. The supplementary demands for grants were approved by the Lok Sabha, focusing on infrastructure and addressing skill deficits to boost employment and development.

On Tuesday, Union Finance Minister Nirmala Sitharaman revealed that the effective capital expenditure for the current fiscal year stands at a historic Rs 15.02 lakh crore. This expenditure marks one of the highest commitments by the central government, indicating a significant push towards sustaining economic growth.

During a Lok Sabha session discussing supplementary demands for grants for 2024-25, Sitharaman highlighted the critical role of capital expenditure. It supports economic expansion by creating a multiplier effect, vastly outperforming revenue account spending. She emphasized the government's request for parliamentary approval of a gross additional expenditure of Rs 87,700.62 crore.

Sitharaman addressed concerns over the country's economic performance, noting the temporary nature of recent GDP growth blips. She assured that India's economy remains robust, maintaining an average growth rate of 8.3% over the last three years despite global challenges. Additionally, she dismissed fears about a manufacturing slowdown and lauded the NDA government for better inflation control compared to previous administrations.

(With inputs from agencies.)