Now Reading: Centre spends Rs 3.4 lakh crore on capex in Q1
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Centre spends Rs 3.4 lakh crore on capex in Q1
The Centre spent Rs 3.4 lakh crore on capital expenditure in April-June, about 28% of its Rs 12.22 lakh crore FY27 allocation, Finance Ministry data showed. Total expenditure reached Rs 13.57 lakh…
The Story in Brief
The Centre spent Rs 3.4 lakh crore on capital expenditure in April-June, about 28% of its Rs 12.22 lakh crore FY27 allocation, Finance Ministry data showed. Total expenditure reached Rs 13.57 lakh crore, or 25.4% of the annual estimate. The fiscal deficit stood at Rs 3.08 lakh crore, or 18.2% of the full-year target, slightly above 17.9% a year earlier.
Total receipts were Rs 10.49 lakh crore, including Rs 6.37 lakh crore in net tax revenue and Rs 3.78 lakh crore in non-tax revenue. Capex rose 23.7% year on year, while revenue spending increased 7.4%, Mint reports. The Centre has budgeted a FY27 fiscal deficit of Rs 16.96 lakh crore, or 4.3% of GDP. Economists caution that first-quarter figures can be distorted by uneven tax, dividend and GST flows.
The Indian Opinion
The loudest narratives are already familiar: that any deficit rise proves fiscal recklessness, or that every rupee of capex automatically guarantees growth. Neither follows from these figures. Public investment can support demand, but its value depends on completed projects, useful assets and private investment that follows. The early urea subsidy drawdown also deserves scrutiny, since persistent fertiliser prices could pressure the budget later. The clearest test is whether the Centre stays within its 4.3% deficit target while sustaining productive spending.
Sources (2): livemint.com, livemint.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
