Tight-fisted Budget leads to capex squeeze\, and it\'s not surprising anymore

Tight-fisted Budget leads to capex squeeze, and it's not surprising anymore

The share of capital expenditure has shown a declining trend over the last twenty years

Sachin P Mampatta  |  Mumbai 

With every passing year, the absence of big-ticket investment announcements in Union Budgets seems to surprise less. The share of the government's capital expenditure has been showing a declining trend in the last two decades.

Tightening fiscal conditions, for a variety of reasons, have had a disproportionate impact on the government's capital spending over the years, shows research. Earlier, the governments could get the central bank to create the cash they needed to meet the shortfalls. But this monetisation of fiscal deficit caused inflationary problems, so governments were ...

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Read our full coverage on Fiscal consolidation
First Published: Tue, July 16 2019. 12:27 IST