In her interim budget released on Thursday ahead of the general elections, Union Finance Minister Nirmala Sitharaman stated that the government plans to increase capital expenditure outlay by 11.1% to Rs 11.11 lakh crore in 2024–25. Long-term physical or fixed assets are established through a capital expenditure, or capex. The government proposed to raise capital expenditure outlay by 33% to Rs 10 lakh crore in 2023–24, which was estimated to be 3.3% of GDP, during last year’s last full budget of the Prime Minister Narendra Modi-led government’s second term.
The government’s efforts to boost growth potential and job creation, attract private investments, and act as a buffer against global headwinds are heavily reliant on the significant increase in capital expenditure. In her opening remarks, Finance Minister Nirmala Sitharaman stated that the government’s implementation of several structural pro-people reforms over the past ten years has resulted in a significant transformation of the Indian economy under Prime Minister Narendra Modi.
“In 2014, the country was facing enormous challenges, the government overcame those challenges and undertook structural reforms, pro-people reforms were undertaken, conditions for jobs and entrepreneurship were set in, fruits of development started reaching people at scale, country got a sense of new purpose and hope,” Sitharaman said.
“In second term, the government strengthened its mantra and our development philosophy covered all elements of inclusivity, namely social and geographical With a whole of nation approach, the country overcame challenges of the COVID-19 pandemic, took long strides towards Aatma Nirbhar Bharat and laid solid foundations for Amrit Kaal.”
She stated that the goal of her government’s development efforts is comprehensive, inclusive, and all-encompassing, encompassing all castes and individuals at all levels. By 2047, we want to transform India into a Viksit Bharat. The interim budget will cover the short-term financial requirements until a government is formed following the Lok Sabha elections. The new government will then present a full budget in July.
