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FM asks ministries to provide capex plan for next 4 quarters

The total amount available for capital expenditure for 2019-20 is Rs 5.45 lakh crore

September 27, 2019 / 06:56 PM IST
Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman

The government has asked all ministries to prepare a clear picture of their capital expenditures (CAPEX) for the next four quarters, finance minister Nirmala Sitharaman said on September 27.

“Within the next week they should be coming back to the expenditure secretary with a clear picture of what is the capex expenditure by each of these ministries in the next 4 quarters,” Sitharaman said.

The minister also said that the larger intention of the government has been that money should flow to people who have been waiting for it.

Total expenditure of the central government for FY2019-20 through the budget is Rs 27.86 lakh crore. Of this capital expenditure is budgeted at Rs 3.38 lakh crore (12.2 percent) in budget estimates 2019-20 as against revenue expenditure of Rs 24.27 lakh crore (87.8 percent).

“As on August, it (capex) is 42 percent and now they have almost reached around 50 percent of their capital expenditure target. Entire capital expenditure is on time so that investment in economy comes and that much liquidity is pumped into the market,” G C Murmu, expenditure secretary, said.

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The total amount given to ministries and departments as grant in aid (GIA) for creation of capital assets is Rs 2.07 lakh crore.

The total amount available for capital expenditure for 2019-20 is Rs 5.45 lakh crore.

Total CAPEX till August under capital head has been reported at Rs 1.36 lakh crore (40.28 percent) and that under GIA has been reported at Rs 0.82 lakh crore (39.7 percent), a total of Rs 2.18 lakh crore (40 percent).

To address slowdown in growth, the government has been holding a series of stakeholder consultations.

The September 27 meeting was in continuation of the meetings held by the expenditure secretary to review CAPEX as well as to ensure that due payments to contractors, government e-marketplace (GeM) dues and MSME dues are cleared.

The government will be holding another round of consultation with public-sector undertakings regarding their CAPEX plans on September 28.
Moneycontrol News
first published: Sep 27, 2019 06:56 pm

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