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Business News/ Economy / Govt’s FY24 capex target on track; 80% spent till early-Feb
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Govt’s FY24 capex target on track; 80% spent till early-Feb

The government’s cash balance for the final quarter of the financial year, however, is “not high”

The railways ministry had utilised up to 85% of its revised budgetary allocation for FY24 in the first nine months of the financial year.Premium
The railways ministry had utilised up to 85% of its revised budgetary allocation for FY24 in the first nine months of the financial year.

NEW DELHI : The Union government is on track to achieve its capital expenditure target for the ongoing financial year, a senior government official said, riding accelerated spending on key infrastructure projects essential to spur economic growth.

Till early February, the government had spent about 80% of its total capital expenditure target for FY24, according to a briefing by the finance ministry on Monday. 

In the first nine months of the financial year, the government had spent only about 68% of its capex target, as per the Centre’s response to questions at the Rajya Sabha earlier this month.

The official mentioned earlier, requesting anonymity, also said the government was holding a modest cash balance to meet its commitments for the final three months of FY24.

“The cash balance with the Centre is not high as the government’s borrowing for the fiscal year has been completed," the official said, without disclosing the amount. 

In the July-September second quarter, the Central government had aimed to maintain a comfortable cash position of at least 1 lakh crore to ensure sufficient buffers. However, the cash balance has depleted since due to the government’s increased capital expenditure.

The Union government’s capex target for FY24 stands at 9.5 lakh crore, as per the revised budgetary allocation for the financial year, up from the 7.28 lakh crore revised estimate for FY23. 

For FY25, the government in its interim budget raised the central capex allocation to 11.11 trillion to develop infrastructure projects.

Mint had on 11 February reported that the railways, road transport, and highways ministries had utilised up to 85% of their budgetary allocations in the first nine months of FY24, and the defence ministry about 71%.

The consumer affairs, food and public distribution ministry had till December utilised about 64% of its budgetary allocation for FY24, the education ministry about 46%, and the ministry for micro, small and medium enterprises about 23%.

As for small savings schemes, net collections as of January were at 2.77 lakh crore, amounting to about 64% of the revised estimate of 4.37 lakh crore for FY24, said the official mentioned earlier. 

In the corresponding 10 months of FY23, net small savings scheme collections were at 1.91 lakh crore, or 44% of the target ( 4.39 lakh crore as per the revised estimate) for the financial year.

As of early February, the government had collected 90,000 crore under the senior citizen scheme, over 20,000 crore under the monthly income scheme, and more than 19,000 crore under its Mahila Samman Saving Certificate scheme for women, the official said. 

Small savings schemes are investment avenues offered and managed by the government that allow individuals to save and accumulate wealth. 

The government offers nine types of small saving schemes, including recurring deposit, public provident fund, Sukanya Samriddhi Yojana, Mahila Samman Saving Certificate, Kisan Vikas Patra, National Savings Certificate, and Senior Citizen Savings Scheme.

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ABOUT THE AUTHOR
Rhik Kundu
Rhik writes about the Indian economy and its crucial indicators. He is constantly navigating corporates, decoding policies, and dabbling with everything in between.
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Published: 26 Feb 2024, 08:01 PM IST
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