In 2023-24, the central government will spend ₹10 trillion (Rs 10 lakh crore) on longer-term capital expenditure, extending a strategy adopted to revive growth following the Covid crisis.
The allocation is higher than the previous year’s budget of ₹7.5 trillion (Rs 7.5 lakh crore) and the highest on record.
The year-on-year increase of 33% is only slightly less than last year’s 35% increase.
The capex-to-GDP ratio, which rose to 2.7% in 2022-23, is expected to rise to 3.3% in the new fiscal year, according to Finance Minister Nirmala Sitharaman.
The government will also maintain a ₹1.3 trillion long-term loan to states for longer-term investments, according to the minister.