Interim Budget 2024: FM proposes 11% hike in capex outlay for FY25

Finance Minister Nirmala Sitharaman on Thursday proposed a 11.1% hike in the capex outlay for FY25. Presenting her Interim Budget speech, Sitharaman said provision for FY25 capital expenditure have been raised by 11.1% to Rs 11.11 lakh crore.

In her Union Budget 2023 speech, FM announced a sharp 37.4% hike in capex outlay to Rs 10 lakh crore for FY24.

"Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 per cent to eleven lakh, eleven thousand, one hundred and eleven crore rupees (11,11,111 crore). This would be 3.4 per cent of the GDP," said the FM in her Budget speech.

On the fiscal deficit front, FM said the target was to trim fiscal deficit to below 4.5% by FY26. The FY25 fiscal deficit is seen at 5.1% of GDP. The FY25 net market borrowing is pegged at Rs 11.75 lakh crore. The gross market borrowing is pegged at Rs 14.13 lakh crore.

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