Rise in capital expenditure reflects India’s growth prospects
A steep hike in the government’s capital expenditure in the first quarter indicates brighter prospect for country’s manufacturing sector. The latest government data shows that total capital spending during April-June, 2015 was Rs 31,051 crore, up 38% compared to the same period during previous fiscal. A major part of the government’s expenditure is meant for manufacturing sector in which private investors are least interested due to high rate of interest. According to reports, the Finance Ministry has asked various departments to top-up their budget spending to push growth. Total expenditure from April to June was Rs 4.3 lakh crore, up 24.2% of the budget estimate and higher than 23% registered during the same period of the last financial year. Of the total outflow of funds in the first three months, planned expenditure was 24.7% of the budget estimate at Rs. 1.14 lakh crore. This shows the emphasis given by the present government on development. Planned spending was around 19% of the budget estimate during the last fiscal. The data also shows non-plan spending at Rs 3.16 lakh crore , up 24.1% of the estimate. The government has registered fiscal deficit in the first quarter at 51.6% of Rs 2.86 lakh crore estimated in the annual budget. Last year, the deficit was 56.1% during the same period. At the same time, the tax collection has also increased with total revenue receipt at 12.4% of the budget estimate as against 9.6% collected in the first three months of the last financial year. The government aims to keep the fiscal deficit at 3.9% of GDP in 2015-16.
August 01, 2015 | 6:38 pm IST.
to success.