Capex is the route to economic revival, says Ms. Nirmala Sitharaman

Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, told Business Standard that the government will rely on its public capital expenditure programme to boost demand in the economy and would not pursue sector-specific fiscal policies. In FY23, the Center is expected to spend Rs 7.5 trillion (US$ 94.89 billion) on capital expenditures. Of that, the she notes that Rs. 1 trillion (US$ 12.65 billion) would be given to the states as a long-term, interest-free loan for their capital expenditure requirements.

The full Rs. 1 trillion (US$ 12.65 billion) might be distributed to the states throughout the quarter of July to September. Many states are prepared to spend capital funds on either greenfield or brownfield projects. According to Sitharaman, the Covid-19 pandemic's three phases resulted in a robust economic recovery because the Center adopted a "variegated approach" rather than "one size fits all" policies for various sectors.

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