Union Budget 2022: The capex push, says India Ratings' Devendra Kumar Pant

FY23 Budget aimed at addressing issues related to demand and unemployment through capex. At a time when private sector capex is focused on selected sectors, the government has decided to do the heavy lifting. General government’s contribution to total investment in the economy is around 12 per cent; it will be difficult for the economy to have sustained investment revival only by government capex. Capex in FY23 is budgeted to grow 24.5 per cent from FY22 (RE). The philosophy appears to be addressing the unemployment issue through increased capex, which will have a multiplier impact on the economy. However, capex