Finance Minister Nirmala Sitharaman on February 1 announced a 35.4 per cent increase in capital expenditure to Rs 7.50 lakh crore for FY23 from Rs 5.54 lakh crore for FY22.
The move comes as India focuses on reviving the economy through higher investments amid disruption from the pandemic and rising inflation.
The rise in capex tops estimates as Goldman Sachs had predicted a 12 per cent year-on-year increase.
Last year too the budget saw an infrastructure push -- monetisation of land by public sector enterprises, infrastructure development, and thrust on roads and highways.
The capex allocation of Rs 5.5 lakh crore for 2021-22 meant a 35% rise over a year ago. Compared with 2020-21 revised estimates, the growth stood somewhat lower but still strong at 26%.
This year's growth-oriented budget aims to fuel spending on infrastructure to boost revival from the pandemic even as it sees fiscal expansion with the Centre saying it has missed the fiscal deficit target for the financial year 2022.
The government said it has revised the fiscal deficit target for FY22 to 6.9% from 6.8%. For the next year it set the target at 6.4%, much higher than expected.
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