Read the fine print on govt's big capital expenditure
- The numbers are eye-catching, but the details suggest a different story.
As the economy struggled to find its feet following the pandemic-led disruptions, the Centre announced record capital expenditure to offer much-needed support. It was 2.5% of the GDP in 2021-22, further raised to 2.9% for the current financial year. However, the basic expectation—that public capex would set the wheels of the economy running, and private companies would join in—hasn’t quite materialized.