India’s Finance Minister, Nirmala Sitharaman, announced that the government plans to spend a lot more money on building things next year. The budget for capital spending is set to be Rs 15.48 lakh crore for the fiscal year 2025-26. This is an increase from Rs 13.18 lakh crore, which was the revised budget for the current year.
If we also include money from public companies, the total amount for capital spending will hit Rs 19.80 lakh crore for 2025-26.
During her Budget speech on February 1, Sitharaman mentioned that the goal for capital spending was raised by 10.08% to reach Rs 11.21 lakh crore for next year. The government hopes this will help boost demand and consumption in the economy, aiming to become the third-largest economy in the world by 2030. However, the economy might hit a four-year low this year.
In the current financial year, Sitharaman proposed to lower the capital spending target to Rs 10.18 lakh crore from Rs 11.11 lakh crore.
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