In fact, following the economic disruptions caused by the Russia-Ukraine crisis, the Treasury Department claims that budgeted spending on the capital account will not be cut. One of the defining features of the year-to-date budget was a huge allocation for public infrastructure spending to instill confidence in the economy and keep the investment cycle alive amid a muted response from other drivers such as private investment and consumption. The award was therefore increased to ₹7.5 billion, an increase of 35% from ₹5,54,108 billion in FY22.
In terms of individual departments, the Roads and Railways departments, which account for the lion’s share of the £7.5m investment plan, are stepping on the gas. At ₹40,318 crore in April, the Department for Roads and Motorways has spent 21% of its FY23 allocation of ₹1,87,744. It should be noted that the Motorways Department spent £22,496 on the capital account in April last year.
The Department of Railways also spent an amount of ₹18,200 crore on the month, which is 13% of the annual allocation of ₹1,37,100 in FY23. The amount spent has also increased from ₹13,000 crore capex made by the ministry in April last year.
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