The utilisation of Capex in the ongoing fiscal year has shown a substantial increase of 31.3 per cent compared to the same period last year.
Recent data on project completion rates points towards favourable results, stemming from the government’s efforts to improve coordination and increase funding for significant infrastructure projects.
The latest statistics released by the Centre for Monitoring Indian Economy (CMIE) highlight a notable upsurge in the value of completed government projects — a record spanning over a decade, reports Business Standard.
The evaluation includes investment projects owned by the government, offering a comprehensive outlook on trends and achievements in infrastructure projects, in accordance with CMIE’s database.
While this assessment may not include every single project, it serves as an indicative measure of the trajectory within the infrastructure sector.
According to data from CMIE, in the previous quarter, government projects amounting to Rs 6.9 trillion were successfully completed, showcasing a significant contrast from the prior peak of Rs 1.5 trillion in December 2021.
Data source: CMIE
The month of June 2023 witnessed the completion of around 227 projects, aligning with trends observed in previous quarters.
Further, an examination of newly announced government projects in June 2023 revealed initiatives valued at Rs 1.1 trillion.
In comparison, the corresponding figures stood at Rs 1.5 trillion in March 2021, Rs 2 trillion in June 2021, and Rs 1.3 trillion in September 2021.
Upswing In Government’s Capital Expenditure
The central government has established an ambitious objective to allocate 80 per cent of the total capital expenditure (Capex) by December, well in advance of the upcoming general elections.
The utilisation of Capex in the ongoing fiscal year has shown a substantial increase of 31.3 per cent compared to the same period last year.
The government’s strategy for expenditure, a vital aspect of the investment push in the transportation sector, has observed swift allocation of funds from both the Indian Railways and the Ministry of Road Transport and Highways.
Close to half of the Rs 10 lakh crore Capex has been earmarked for these two ministries — marking the highest-ever utilisation of Capex by these entities.
As per Swarajya’s report, the expenditure by the Union Ministry of Road Transport and Highways and Railway Ministry in creating infrastructure, has crossed Rs 2 lakh crore in the first four months (till July) of the current financial year.
The road ministry is witnessing such rapid progress that it anticipates to reach over 90 per cent of the allocated capital outlay for the financial year, by the end of December.
Indian Railways has spent more than 40 per cent Capex utilisation till July. They added that more than Rs 1 lakh crore has been spent by the national transporter in ongoing infrastructure and safety projects.
In recent years, the Railways, previously characterised by slower progress, has successfully streamlined its expenditure practices.
The government’s emphasis on capital expenditure is geared towards stimulating demand, create jobs, and strengthen the economy by focusing on construction and infrastructure.