New Delhi: The economic survey has emphasized the need for capital expenditure to maintain growth, underlining how the strategy adopted by the government is expected to create conditions for private sector investment by producing demand, and also creating jobs in the coming months.
The Ministry of Finance’s Annual Economic Report Card has suggested that the government seem to be on track to achieve the target of fiscal deficit during the current financial year, given that income has developed, with direct and indirect tax shows strong growth.
The need to maintain “targeted focus” on Capex is in line with the demands of the private sector for Finance Minister Nirmala Sitharaman to continue with its strategy.
“The focus targeted at capital expenditure, with the effects of multipliers produced, will be very important in maintaining economic growth.
When the economy grows further, gathering income from all sources is expected to be stronger, which will help strengthen the fiscal position on the one hand, and create Fiscal space on the other hand, “said the report.
Although the survey refers to the increase in capex 13.
5% during April-November 2021, opposed 26% targeted in the budget, it is a banking in sharp pick-up in spending during the second half of the financial year, quoting experiences.
The Ministry of Finance has encouraged the government department to drive Capex because many of them have left behind.
Apart from higher capex and increased expenses due to higher subsidies and cleaning Indian water contributions, this survey hopes the government will meet the fiscal deficit target 6.
8% of GDP.
” In April November 2021) means that the government has a fiscal space to provide additional support if necessary, “he said.
Referring to data until last November, the survey said the focus of capital expenditure began April to November 2021 was directed to the intensive sectors of infrastructure such as roads and highways, trains and housing affairs.
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