The govt’s efforts at asset building continues, which is why the capex target for this FY is higher by 10.2% than the previous year, Finance Minister Nirmala Sitharaman said at a post-budget interaction with stakeholders from Indian industry.
The FM’s clarification comes amid industry concerns that capital expenditure could suffer as the govt doubles down on its stated target of keeping a firm check on the deficit numbers, as announced in the budget.
For the year ahead, the govt is aiming to facilitate consumption more, which is evident in the tax relief measures in Budget 2025, but that doesn’t mean that the capex focus would decrease, the finance minister said.
The FM also said that the govt will focus more on pruning the debt-to-GDP ratio going forward, with special focus on a) cutting borrowing and b) adhering to the fiscal glide path being followed since July. Every measure will be taken to bring debt down, but it will affect none of the the govt’s programmes, Sitharaman added.
Sitharaman emphasised on power reforms, saying that some of the coming programmes will be as much of a power-guzzler as a job-generator.
The FM also talked of insurance sector reforms, underlining that the govt is looking at measures to raise FDI limits in the sector. India needs more players in insurance as the sector needs to broaden and deepen, she said. Even as steps are being initiated to bring in more players into the sectors, new guardrails are also being put in place to protect consumers, she added.
