(FE)
The Centre’s overall spending grew 12% and its capex by 8% in the first half of this year. The central public enterprises (CPSEs) also lent a helping hand to public expenditure by investing 33% more in April-September this year than in the year-ago period. “Effective and targeted government spending is a key priority of the government. Special thrust has been given to capex in roads, railways, power, housing and digital infrastructure,” finance secretary Ashok Lavasa said. Thanks to frontloading of subsidies and 7th Pay Commission-induced salary hikes, the Centre’s expenditure stood at Rs 11.47 lakh crore (YoY growth of 11.7%), or 53.4% of the full-year target of Rs 21.46 lakh crore, compared with Rs 10.27 lakh crore, or 52% of the FY17 target, in the corresponding period a year ago. However, H1FY18 capex growth was a moderate 8% at Rs 1.46 lakh crore or 47.24% of the FY18 target of Rs 3.09 lakh crore; in the year-ago period, capex was about Rs 1.35 lakh crore or 54.6% of the FY17 target of Rs 2.47 lakh crore.
