Decadal perspective of Modi govt: Crowding in private investments

Though better than before, cost overruns remain a concern. Higher allocations for capital expenditure in FY25 despite the emphasis on prudence

Challenges

The government has been increasing the amount of money it spends on new roads, buildings and other capital expenditure (capex), but there have been signs of a slowdown amid fiscal tightening towards the end of FY24

Though better than before, cost overruns remain a concern

Takeaways

Higher allocations for capital expenditure in FY25 despite the emphasis on prudence
 

States also encouraged to spend more on capital expenditure in addition to spends by the union government