Economy News

Capital expenditure hiked to Rs 5.54 lakh crore increasing growth

Amid the new Union Budget 2021, the Finance Minister hiked the capital expenditure for FY 2021- 2022 to Rs 5.54 lakh crore. The budget for capital expenditure has been increased by 34.5 percent.

The government’s planned capital expenditure has been hiked to Rs 4.39 lakh crore for the current fiscal year.

Earlier it was Rs 4.12 lakh crore. Now the capital expenditure is hiked to Rs 5.54 lakh crore, increasing growth.

There is a sharp increase in the capital budget of 2020-2021. This was an effort made by the government of India to spend more on capital expenditure. It is provided in the revised estimate of 2020-21.

This 34.5 percent hike which is higher than the budget estimate of Rs 4.12 lakh crore in the last fiscal year.

Also, the government has kept a sum of more than Rs 44,000 crore in their Budget head of Department of Economic Affairs.

This saved amount will be utilised for further projects, programs or departments showing good progress in capital expenditure.

The Rs 44,000 amount will also be further utilised for the departments needing further funds.

Apart from this, the government will also provide a sum of more than Rs 2 lakh crore to the states. This amount will also cover the  autonomous bodies for the capital expenditure.

Moreover, the infrastructure will be under more focus of Union Budget 2021.

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