New Delhi, December 1 (IANS). The central government may increase capital expenditure by 25 percent in the second half (October to March) of the financial year 2024-25 as compared to the same period last year. This information was given in the report of investment firm Jefferies.
The report said that there has been an increase in populist schemes in the states. In such a situation, to balance this situation, the central government will increase investment on infrastructure projects, which will support the growth rate and create more jobs.
The report expected the central government’s total expenditure, which includes allocations on social welfare schemes, to grow by about 15 per cent year-on-year in the second half of 2024-25. This shows that the government is placing its emphasis on large infrastructure projects to boost economic growth rate and create more jobs through a higher growth of 25 per cent in capital expenditure.
The report said the increasing success of handout schemes (transfers of money by the government directly to the needy) in state elections, such as Maharashtra’s welfare programme, which costs Rs 46,000 crore annually (1.1 per cent of the state’s GDP), is counter to populist schemes. raises concerns about a possible wave of
The report said 14 out of 28 Indian states already have similar schemes, covering about 12 crore families and costing 0.7-0.8 per cent of India’s gross domestic product (GDP). However, the Indian government’s focus is on creating long-term economic assets by building large infrastructure projects to support growth.
With this, the report has expressed hope that after the recent fall, there may be stability in the Indian stock market.
–IANS
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