 "Govt takes capital expenditure route to spur growth in Budget 2021")
The government’s capital expenditure (capex) usually bears the brunt when it looks to cut expenditure to focus on fiscal consolidation. However, the Budget for 2021-22 (FY22) is an exception.
The government has not only increased the capex for the current financial year in the revised estimates by 6.6 per cent to around Rs 4.4 trillion, but it has also raised it by 25 per cent for the next financial year. Besides, the Centre will provide Rs 2 trillion to states and autonomous bodies for their capex in the current financial year.
The reason for this is not difficult to fathom. Gross domestic
