Govt cuts capital expenditure by 41% in Oct, Nov despite FM nudge

May impact growth in Q3 but capex by select states likely to come to some aid

The Centre’s capital expenditure (capex) declined for the second consecutive month in November, when it fell by more than half, year-on-year (YoY). It was down 24.11 per cent in October.

This comes despite Finance Minister Nirmala Sitharaman nudging ministries and departments to spend more on this front. It may affect economic growth in the third quarter of the current fiscal year. However, a bit of support may come from some states, which saw a rise in capex due to expeditious transfer by the Centre.

The Centre spent Rs 20,360 crore as capex in November this year against Rs 43,803 crore a year