Finance Minister Nirmala Sitharaman in her Union Budget speech on July 23 kept India’s FY25 capex outlay unchanged at Rs 11.11 lakh crore as was earmarked in the Interim Budget in February. This is higher than the last year's revised estimate of Rs 9.5 lakh crore.
The government will end up spending 3.4 percent of the Budget on capex compared to 3.2 percent in the previous year and almost double what it spent five years ago.
The growth in capex has stayed in double digits in six of the last seven years and is likely to slow down from the 28.4 percent growth experienced in FY24 and 24.8 percent the year before. Roads and railways claim the biggest slice of the capex pie, with their share inching up from just over 35 percent a decade ago to nearly 50 percent in FY24.
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