Finance Minister Nirmala Sitharaman today announced a capital expenditure target of ₹10 lakh crore in the Union Budget 2023-24. “Capital investment outlay is being increased steeply for the third year in a row by 33% to ₹10 lakh crore, which would be 3.3% of GDP. This will be almost three times the outlay in 2019-20,” she said in the Budget speech.
“This substantial increase in recent years is central to the government’s efforts to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds,” she added.
“The direct capital investment by the Centre is complemented by the provision made for the creation of capital assets through grants-in-aid to states. The ‘Effective Capital Expenditure’ of the Centre is budgeted at ₹13.7 lakh crore, which will be 4.5% of GDP,” she pointed out.