Government's Fiscal Year 2024 Capital Expenditure Update: Achieving Targets and Accelerated Spending
The Union government is making significant progress towards achieving its capital expenditure (capex) target for the fiscal year 2024, with approximately 80% of the budget already spent by early February. This accelerated spending is primarily directed towards critical infrastructure projects aimed at stimulating economic growth.
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Spending Milestones
In the first nine months of the financial year, the government initially spent 68% of its capex target. However, the recent update from the finance ministry reveals that spending has surged, reaching the 80% mark, indicating an increased pace of investment in essential projects.
Cash Position and Commitments
A senior government official, speaking on the condition of anonymity, disclosed that the government is maintaining a moderate cash balance to meet its obligations for the remaining three months of FY24. This balanced approach is attributed to the completion of the government's borrowing for the fiscal year.
Capex Target and Budgetary Allocations
The government's capex target for FY24 is ₹9.5 lakh crore, reflecting a significant increase from the revised estimate of ₹7.28 lakh crore for FY23. This augmented allocation underscores the emphasis on infrastructure development for economic growth. Furthermore, in the interim budget for FY25, the central capex allocation has been raised to ₹11.11 trillion to foster the development of crucial infrastructure projects.
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Sector-wise Utilization
A report from February 11 highlighted the efficient utilization of budgetary allocations in various sectors. The railways, road transport, and highways ministries led the way by utilizing up to 85% of their budget in the first nine months. The defence ministry followed closely, with about 71% utilization.On the other hand, ministries such as consumer affairs, food and public distribution, education, and micro, small, and medium enterprises reported varying levels of expenditure, emphasizing the diverse allocation and spending patterns across sectors.
Small Savings Schemes Performance
Small savings schemes, managed by the government, have exhibited commendable performance. As of January, net collections stood at ₹2.77 lakh crore, constituting 64% of the revised estimate of ₹4.37 lakh crore for FY24. This growth surpasses the corresponding period of the previous fiscal year, highlighting increased public participation in these schemes.
Key Statistics of Small Savings Schemes
• Senior Citizen Scheme: ₹90,000 crore collected
• Monthly Income Scheme: Over ₹20,000 crore collected
• Mahila Samman Saving Certificate Scheme: More than ₹19,000 crore collected
Conclusion
The government's commitment to achieving the FY24 capex target and the strategic allocation of funds across sectors signal a robust approach to infrastructure development. The success of small savings schemes further underscores the public's confidence in government-managed investment avenues. These developments collectively contribute to a positive outlook for economic growth in the coming fiscal years.
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