Centre Set To Surpass FY25 Capex Target Of Rs 10.18 Lakh Crore

The government is poised to surpass its revised capital expenditure (capex) target of Rs. 10.18 lakh crore for FY25 by a modest margin.

According to an NDTV Profit report, citing a top official, “The data received so far indicates that we are likely to exceed the revised target by a significant margin in absolute terms”.

The capex target was lowered to Rs. 10.18 lakh crore (revised estimates) in the Union Budget 2025-26, from Rs. 11.1 lakh crore. For the current fiscal (FY26), a capex allocation of Rs. 11.21 lakh crore has been set by the government.

According to Union Finance Minister Nirmala Sitharaman, the Indian economy will continue to be the world’s fastest-growing economy backed by the increase in the government’s capital expenditure in the Budget for 2025-26 and rising consumption levels, especially in the rural areas. The effective capital expenditure works out to 4.3 per cent of the GDP in the Budget for 2025-26 while the fiscal deficit is 4.4 per cent.

“This indicates that the government is using the entire borrowed resources for financing effective capital expenditure, creating capital assets,” she pointed out. The Indian economy is expected to clock 6.5 per cent growth in 2025-26, driven by government investment in big infrastructure projects, and acceleration in private investment during the year, according to the latest EY Economy Watch report.

A Jefferies report said last month that there has been a significant increase in capital expenditure in India, with growth expected to continue in the coming months as several sectors witnessing strong investments.