Union Finance Minister Nirmala Sitharaman said a significant increase in public expenditure in the last five years has pushed the country’s growth momentum and increased private sector’s investment in infrastructure.
Speaking at the inaugural ceremony of the 4th Kautilya Economic Conclave 2025 in New Delhi on Friday, Sitharaman said the government remains steadfast in its commitment to continue pumping in capex.
“In the last five years, the (capex) numbers have gone significantly higher each year. The commitment for capital expenditure has only grown and even plateaued. That commitment continues,” she said, while replying to a question on what percentage of the GDP the government will earmark for investment every year.
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The government has set a total capital expenditure target of ₹11.21 lakh crore for 2025-26 (April-March). In the first four months of this fiscal, capital expenditure is up 33 per cent year-on-year at ₹3.47 lakh crore.
To maintain economic momentum during the COVID-19 pandemic, the Narendra Modi-led government had increased capital expenditure by investing in infrastructure.
The finance minister noted that private investment is also beginning to grow in the country, with interest reviving in public-private partnership (PPP) projects.
“I can see private investment beginning to see opportunities. Of late, I am seeing a greater interest in India for public and private investments to grow in sizeable numbers,” she added.
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