PSUs may go slow on new projects in FY18

Budget Estimates show 5% dip in resource generation

The Budget proposals could lead to a further slowdown in capital expenditure by central public sector enterprises (CPSEs), delaying the investment revival in the economy. The Union Budget 2017-18 projected a five per cent decline in resource generation by public enterprises in FY18, including internal accruals.
 

It estimated all central PSEs to generate Rs 3.85 lakh crore worth of resources in FY18, down from Rs 4.06 lakh crore in the current financial year. In comparison, government capital expenditure is budgeted to grow by 1.3 per cent in FY18. 

The combined capital expenditure, including that of projects in progress by non-bank