Home / Economy / News / Robust capital expenditure by states crucial for economic recovery: RBI

Robust capital expenditure by states crucial for economic recovery: RBI

The first two quarters of FY21 saw a poor focus on capex from the states' side, data showed

Premium

Reserve Bank of India. (File Photo)

4 min read Last Updated : Dec 25 2020 | 12:44 AM IST

A revival in capital expenditure by the Centre and states in the second half of the financial year is imperative for sustaining the momentum of economic recovery, the Reserve Bank of India said in its monthly bulletin.

“Capital expenditure, which collapsed in H1 FY21, will need to be scaled up as a priority. Public investment in healthcare, social housing, education and environmental protection is the need of the hour to build a more resilient and inclusive economy,” the RBI said in an article titled “Government Finances 2020-21: A Half-Yearly Review”.

The first two quarters of FY21 saw a poor focus

Topics : Capital Expenditure Economic recovery States budget

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in