ICRA Urges Rs 11 Lakh Cr Capex Target
ICRA suggests Rs 11 lakh crore capex for 2025 Budget and income tax relief to boost consumer spending
By : Madhusudan Sahoo
Update: 2025-01-15 12:37 GMT
New Delhi: The government should target a capital spending of over Rs 11 lakh crore in the Budget for the next fiscal while giving inflation-adjusted relief on personal income tax to boost consumer spending, rating agency ICRA said on Wednesday.
“Last year’s record budgeted capital expenditure of Rs 11.11 lakh crore is likely to fall short by about Rs 1.4 lakh crore and the next year's target should be fixed at the last year's level with a focus on keeping borrowing within reasonable limits,” said Icra chief economist Aditi Nayar.
Between April and November 2024, the capex spending stood at Rs 5.13 lakh crore, 46 per cent of the Budget estimates of Rs 11.11 lakh crore. “The capex numbers are trailing the run rate required to get to the Budget target in the current fiscal. We are looking at a large shortfall in the current fiscal. For next year, we are hoping that we will get fiscal space to prioritise capex,” Nayar said.
“Last year’s record budgeted capital expenditure of Rs 11.11 lakh crore is likely to fall short by about Rs 1.4 lakh crore and the next year's target should be fixed at the last year's level with a focus on keeping borrowing within reasonable limits,” said Icra chief economist Aditi Nayar.
Between April and November 2024, the capex spending stood at Rs 5.13 lakh crore, 46 per cent of the Budget estimates of Rs 11.11 lakh crore. “The capex numbers are trailing the run rate required to get to the Budget target in the current fiscal. We are looking at a large shortfall in the current fiscal. For next year, we are hoping that we will get fiscal space to prioritise capex,” Nayar said.