Government committed to make sure that capital expenditure continues to support growth momentum

17 Jun 2022 , 03:16 PM

On Friday (17-06-2022), Chief Economic Advisor V Anantha Nageswaran stated that the government is dedicated to ensuring that capital investment would continue to maintain the economic development momentum restored following the third COVID-19 wave. To enhance the real economy, the government has taken a number of actions, including decreasing taxes, continuing privatization, establishing institutions to sequester and manage problematic loans, and initiating an asset monetization push.

“Given the ongoing sense of uncertainty among private sector participants, both in banking and non-banking,” Nageswaran said at a banking event organized by Financial Express, “the government is committed to ensuring that capital expenditure continues (in) such (a) way that the growth impulse that we have regained after the third wave is not surrendered.” While capital spending was projected at Rs 6 lakh crore in the previous fiscal year, the government only spent Rs 5.92 lakh crore.

“Thus, if the government is able to execute the capital spending of Rs 7.5 lakh crore for the current fiscal year, it will be the largest genuine economic intervention,” he added. He said the banking industry plays a critical role in preserving the existing economic situation and converting the country’s currency relative advantage into a source of absolute growth advantage over other countries.