The center will have to spend approximately RS 1.3 Lakh crores each month in the last two months of the current financial year to reach its annual capital expenses of RS 10.18 Lakh crores or it could be lower than the objective.
Official data indicates that the center spent RS 7.57 Lakh crore between April 2024 and late January 2025 or 74.4% of the objective for capital expenses. The center capex in January was 72,022 crore.
Until now, this exercise, the center has managed to spend an amount of more than 1.3 Lakh believes in just a month of 2024-25 for capital expenses. It was in December 2024 when the center capex was RS 1.71 Lakh crore.
Due to the code’s conduct code in place for the general elections and a long monsoon, the center had to reduce its CAPE budgeted capex from RS 11.1 CRORE LAKH. The Union’s full budget was presented in July and adopted in August and since then, the infrastructure ministries have been invited to support the capital spending pedal, which is considered a key to supporting economic growth.
According to data from the controller and the listener, the main ministries of infrastructure such as railways, roads and power have experienced a good collection in CAPEX but still have ways to follow. While the railways spent 83% of the revised CAPEX CAPE of RS 2.52 Lakh crores, the roads have 87% of the allocated target of Rs 2.72 Lakh crores between April and January of this exercise. Power spent 92% of the CAPEX target for the financial year.
Analysts believe that if the budget deficit target of 4.8% of GDP will be achieved, the center will have to intensify CAPEX if it wants to reach the objective.
“Capex growth is still lagging behind targeted growth; It increased by 5% over a year in the 10 months of the year 2025. To achieve the revised objective of financial year 25, the average CAPEX in February and March must be Rs 1,305.35 billion, which has not been obtained since the monthly CAPEX data is available. Gross tax revenues are lagging behind the objective of exercise 25 (RE), however, the slow growth of the CAPEX offers a cushion to the budget deficit, “said a report by India Ratings and Research, adding that it expects the government to reach its objective of budget deficit for the 2010 financial year.
Aditi Nayar, chief economist, chef – Research and awareness, ICRA also noted that the center CAPEX must extend from around 15% in annual shift in February -March 2025, on a high basis, or record a monthly execution rate of 1.3 Billion of rupees, to respect the FY2025 Re. “A slight lack of capex compared to the target of RS. 10.2 Billions for the 201025 financial year cannot be entirely excluded. Overall, the ICRA expects the budget deficit to print online with the 20125 Rs. 15.7 Billions or 4.8% of GDP, “she said.
Flash figures:
Meanwhile, with the end of the financial year, the Ministry of Finance also closely monitors real receipts and expenses by Line ministries in March. He ordered that the flash figures for receipts and expenses daily for the month of March 2025 will be shared with the secretaries of the departments of spending and economic affairs.
