Govt cuts capex two months in a row to contain fiscal deficit

Consequently, capex down to 47.3% of Budget Estimate in H1 of FY18 from 54.7% a year ago

The government had to cut expenditure, including on the much-needed capital front, in September for a second month in a row, to control its fiscal deficit.  

The squeeze on capital expenditure (capex) was so much that it declined even cumulatively as a percentage of Budget expenditure in the first half of 2017-18, compared with the year-ago period.

Capex was Rs 1,46,389 crore in April-September, the financial year’s first half (H1), which was 47.3 per cent of the Budget Estimate (Rs 3,09,230 crore) against 54.7 per cent of BE in H1 last year. However, in absolute numbers, it rose 8.5 per cent in