Finance Secretary Tuhin Kanta Pandey stated that capital expenditure (capex) has not been abandoned and should be viewed as a combination of central spending and allocations to states.He explained that while there may not be a one-time 30% increase, the focus remains on executing capex plans. Pandey noted that revised estimates show a 10% rise in capex over the initial budget estimates. When combined with funds routed through states for capex, the growth stands at 17%.He stressed that the complete picture becomes clearer when state allocations are also considered, as reflected in the Budget.
Pandey highlighted that giving people more money boosts spending, encourages saving, and promotes investments. He noted that this money ultimately flows back into the economy.Pandey explained that the economy involves three key players: households, private companies, and the government. All of them save and invest in different ways. He said the government is shifting some funds that it would have kept under the old system into the hands of people. This move can boost consumption, savings, or investments.Read Here | Raamdeo Agrawal’s post-Budget investment strategyHe added that when people have more money, they might spend, save, or invest it. If they save, someone else uses that money for investments. If they invest directly, like buying a house, they become direct investors. And if they spend, they drive demand, prompting others to invest. Pandey emphasised that this money will ultimately return to the economy.Arunish Chawla, Secretary of DIPAM, explained that there is no fixed target for disinvestment. Instead, the government has adopted a broader asset management approach, focusing on maximizing value not just for the government but also for minority shareholders and ordinary investors.He added that their strategy aims to balance a steady dividend policy with a careful approach to monetising assets. They have also set strict performance goals for public sector enterprises (CPSEs) and capital expenditure targets.Regarding the disinvestment of IDBI Bank, Chawla confirmed that it is progressing as planned, though he didn’t provide specific details. He assured that updates would be shared in due time.Follow all the updates on Income Tax Slabs Budget 2025 hereClick here for the complete coverage of Budget 2022Also Read | CEA Nageswaran cautions against overreliance on govt capex; urges private sector to drive investments
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