The coming Union Budget 2016-17 will likely come good on Finance Minister Arun Jaitley’s promise to continue the government’s public spending push, with capital expenditure (capex) for the next year expected to come close to Rs 3 lakh crore for the first time.

1. Budget 2016: Enhanced capital
spending likely
The coming Union Budget 2016-17 will likely come good on Finance Minister Arun
Jaitley’s promise to continue the government’s public spending push, with capital expenditure
(capex) for the next year expected to come close to Rs 3 lakh crore for the first time.
At a time when private sector balance sheets are stretched and banks burdened with
non-performing assets, Jaitley had stated the Centre’s commitment to boost spending in
infrastructure as an impetus for growth. For 2015-16, the finance minister had budgeted Rs 2.41
lakh crore in total capex (including loan disbursements), about Rs 49,053 crore, or 25.5 per
cent, higher than the 2014-15 revised estimates of about Rs 1.92 lakh crore.
Read More News: Budget 2016 Union Budget 2016-17
Next year too, a similar push is expected as the India Budget 2016-17 budgeted capex
could be around 20-25 per cent higher than this year. Compared to the budgeted figures
available, that comes to around Rs 2.90-3.02 lakh crore.