Budget 2024: Capex target raised by 11.1 percent to Rs 11.11 lakh crore to boost economic growth

Boosting infrastructural and economic development to enhance greater employment opportunities and foreign investment ratios, a high amount of capital expenditure is mentioned for the next fiscal year, increasing 11.1 percent to Rs 11.11 lakh crore budget outlay.

Budget 2024: Capex target raised by 11.1 percent to Rs 11.11 lakh crore to boost economic growth

The finance minister has updated that the investment is almost 3.4% of the GDP. For the fast-expanding middle class and rapid urbanization taking place highly, metro rail and NaMo Bharat can be catalysts for the required urban transformation. Expansion of these systems will be accessible to focus on transit-oriented development. Earlier, the capital budget for 2023-24 was increased by 33 percent to Rs 10 lakh crore, pointing to 3.3 percent of GDP.

In the 2023-24 budget, around Rs 10 lakh crore was allocated towards capital expenditure and this was 33.4 percent higher than the budget estimate for 2022-23.

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The government intends to reduce the fiscal deficit below 4.5% by the financial year 2025-26 while the estimated fiscal deficit for 2024-25 is pegged at 5.1% of the GDP. Meanwhile, the gross and net market borrowings through dated securities during 2024-25 are around Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively.

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The private and foreign investments are mandatory to relax the stressed domestic financial deficiency and new targets are set to generate revenue and capital growth. Moreover, the 2047 vision of Viksit Bharat can be achieved through fundamental sources which can be propounded by lowering the fiscal deficit and less dependence on imports.

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