'Government should focus on capital expenditure' Former Vice Chairman of NITI Aayog Rajiv Kumar has said that the Center should focus on capital expenditure to bridge the country's infrastructure gap.
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| NITI Aayog Rajiv Kumar |
He also said
And since private investment remains weak, government capital expenditure is crucial, he said.
The central government should continue to undertake capital enrichment to bridge the infrastructure gap that has plagued the Indian economy. Rajiv Kumar said that more attention should be given to capital expenditure in the interim budget to be presented.
The government is able to maintain fiscal consolidation due to the small improvement in the ratio between tax and GDP despite increasing capital expenditure. Also the broadening of indirect tax revenue and direct tax revenue base will also help. He said this.
Fiscal deficit reached 55 percent of the budget target.
At the end of December last year, the central government has announced that the country's financial deficit has reached 55 percent of the budget target.
The central government has estimated that the fiscal deficit for the current financial year will be 5.90 percent of the GDP or 17.86 lakh crore rupees.
In this case, the financial deficit has reached 9.82 lakh crore rupees at the end of last December.
Similarly, the net tax revenue for the period up to the end of December was 17.29 lakh crore rupees. This is 74.20 percent of Budjet's target.
The total expenditure of the government during the period from April to December was 30.54 lakh crore rupees. This is 67.80 percent of the budget target.
It is noteworthy that the government has decided to bring the fiscal deficit below 4.50 percent of the GDP in the coming financial year as part of fiscal consolidation.