Economics
India Is Spending Less on Growth Drivers With Deficit Blowout Risk Looming
- Capital expenditure at 40% of budgeted amount as of September
- Spending budgeted amount key for meaningful stimulus: Citi
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India has scaled back expenditure, including on productive assets that aid economic growth, as the government is confronted with the risk of its budget deficit blowing out.
Capital expenditure -- the money spent on creating, maintaining, or improving fixed assets like roads and factories -- stood at 40% of the budgeted amount in the six months to September, down from 55.5% in the year-ago period, data from the government’s Controller General of Accounts show. The overall spending during the period was 49% of the budget aim compared to 53% last year.