The government allocated Rs 11.1 lakh crore as capital expenditure for the next fiscal year, Finance Minister Nirmala Sitharaman said in her budget speech on February 1, a rise of 11.1 percent.
Brokerages had predicted that there would be a slowdown in capital expenditure growth with focus shifting towards alleviating rural stress and addressing the needs of the economically vulnerable.
They had highlighted the delicate balance the government needs to maintain in resource allocation, anticipating a more measured growth in capex expenditure at 12-13 percent.
Nuvama had emphasised on potential support for consumption through initiatives like rural spending and tax breaks. While advocating for fiscal prudence, Nuvama had expected capex spend growth to be around 15-16 percent year-on-year in 2024.
Jefferies, in its interim Budget preview, had expressed a more conservative outlook, anticipating a modest 7-8 percent growth in the government capex budget for FY25.
