monday The RBI bulletin issued on 2024-25 said that private capital expenditure is expected to grow 54 per cent year-on-year to Rs 2.45 lakh crore in the current financial year 2024-25. The bulletin said that in the last financial year, private capital expenditure i.e. capex was Rs 1.59 lakh crore. This bulletin, written by Reserve Bank of India (RBI) employees – Kamal Gupta, Rajesh Kavediya and others, said that this estimate has been made after analyzing the investment of private corporates on the basis of projects approved by banks or financial institutions during the financial year 2023-24.
Investment cycle expected to remain positive
According to the bulletin, the phased funding of upcoming projects shows that the estimated capital expenditure for these will increase from Rs 1.59 lakh crore in 2023-24 to Rs 2.45 lakh crore in 2024-25. It further said that the investment cycle is expected to remain positive and its sustainability needs to be closely monitored.
The right balance between fiscal prudence and macro stability
Apart from this, the RBI bulletin said that the right balance has been struck between fiscal prudence and macroeconomic stability in the general budget. This has strengthened the growth outlook in the medium term. It said that the budget documents presented by Finance Minister Nirmala Sitharaman on July 23 emphasize on strengthening macroeconomic stability and harnessing potential in different sectors of the economy.
Trying to limit fiscal deficit to 4.9 percent
It said that the objective of the budget document is to support the country’s growth and employment generation while pursuing fiscal consolidation. Accordingly, with the fiscal deficit limited to 4.9 percent, the government intends to maintain this figure at a level where the central government debt will continue to decline as a proportion of gross domestic product (GDP).
With PTI inputs
Latest Business News
