
The upcoming Budget for fiscal 2024-25 is likely to see increased capital expenditure and welfare subsidy allocations compared to the estimates projected in the Interim Budget earlier this February.
The Centre had allocated Rs 11.11 lakh crore, representing an 11 per cent increase over budget estimate for the previous fiscal year, and a 16.9 per cent rise over the actual spending.
The government is contemplating a further 5-7 per cent increase in capital expenditure over the interim estimates, official sources told Business Today TV.
“Capital expenditure has been our focus and discussions are underway to see what can be done,” sources added. Similarly, the government is considering up to a five per cent increase in various subsidy allocations. The Interim Budget had allocated Rs 4.1 lakh crore for subsidies, seven per cent lower than the revised estimate of Rs 4.41 lakh crore for 2023-24.
Indian industry has sought increased capital expenditure by the Centre.
Sanjiv Puri, Chairman and Managing Director, ITC Ltd and President, Confederation of Indian Industry, suggested at a recent press conference that the government should consider raising spending on this account by 25 per cent this fiscal year. He cited the windfall dividend of Rs 2.1 trillion from the Reserve Bank of India and robust tax receipts as supporting factors.
Puri also said such an increase in spending on asset creation, combined with an anticipated rise in private investments, would help India achieve eight per cent real GDP growth for the second consecutive year.