Fiscal stress a reality but Centre committed to capex, says Expenditure Secretary 

The Centre remains committed to its Budgeted capital expenditure of Rs 12.2 lakh crore this fiscal, Expenditure Secretary V. Vualnam said on Friday, but underlined that there is considerable fiscal stress on the Exchequer due to the West Asia conflict.

“Fiscal stress is very much a priority, but at the same time the priority sectors are also very much a priority,” the Expenditure Secretary said, adding that sectors including highways, railways, ports and shipping and urban development will get the capex funds allocated to them this fiscal.

“We are committed to providing funds despite the stress,” he said at the ICPP Growth Conference organised by Ashoka University.

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Highlighting that the government’s fiscal prudence has stood it in good stead, Vualnam said the excise duty cut on petrol and diesel has impacted the fisc.

From India being called in a Goldilocks moment of high growth and low inflation, he noted that the situation has completely changed. “In the changed scenario, the buoyancy of gross tax revenue is a question,” he added.

Vualnam also underlined that the quality of expenditure and the performance of the government’s manpower pool will be a focus from an expenditure point of view. The government will remain focussed on R&D and streamlining procedures to improve the ease of doing business.

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