The money allocated to capital expenditure in the budget is the highest in the last one decade

New delhi date. 01 February 2021, Monday

In the budget for the next financial year, the money allocated to the finance minister for capital expenditure is the highest in the last one decade. In the current budget, 12.51 per cent of the budget has been allocated for capital expenditure as compared to 12.5 per cent last year.

Capital costs include the cost of erecting buildings for road and health services. While salaries, interest payments etc. paid to government employees are included in the revenue expenditure.

The share of capital expenditure in the total budget has been declining in recent years. In the previous financial year 2006-07, the share of capital expenditure in the total budget was 16.50 per cent. In FY2030, the share fell to 19.18 per cent, the lowest in ten years.

The Corona epidemic has hit capital spending in the current financial year. Expenditure on new projects declined by 3.50 per cent to Rs 0.3 trillion in the quarter ended December 2020. In the December 2015 quarter, the figure was Rs 3.01 trillion.

Along with the government, private sector capital expenditure is also expected to increase. Private sector companies plan to increase their capacity in the face of low interest rates.