Govt using almost entire borrowings in FY26 towards capex: FM Sitharaman
The government is using almost the entire borrowing in 2025-26 towards financing capital expenditure, Finance Minister Nirmala Sitharaman said on Tuesday. She said the effective capital expenditure in FY'26 is Rs 15.48 lakh crore, which is 4.3 per cent of GDP. The fiscal deficit target is 4.4 per cent of the GDP for next fiscal. "It indicates that the government is using almost the entire borrowed resources for financing effective capital expenditure. So the borrowings are not going for revenue expenditure or committed expenditure, or any of those kinds. It's going only for creating capital assets. So, in effect, the government intends to use about 99 per cent of borrowed sources to finance effective capital expenditure in the upcoming year," she said in the Lok Sabha. Replying to a discussion on General Budget 2025-26, Sitharaman said the Budget has come in a time of immense uncertainties, changes in the global macro-economic environment, stagnating global growth and sticky ...
The government is using almost the entire borrowing in 2025-26 towards financing capital expenditure, Finance Minister Nirmala Sitharaman said on Tuesday.
She said the effective capital expenditure in FY'26 is Rs 15.48 lakh crore, which is 4.3 per cent of GDP.
The fiscal deficit target is 4.4 per cent of the GDP for next fiscal.
"It indicates that the government is using almost the entire borrowed resources for financing effective capital expenditure. So the borrowings are not going for revenue expenditure or committed expenditure, or any of those kinds.
It's going only for creating capital assets. So, in effect, the government intends to use about 99 per cent of borrowed sources to finance effective capital expenditure in the upcoming year," she said in the Lok Sabha.
Replying to a discussion on General Budget 2025-26, Sitharaman said the Budget has come in a time of immense uncertainties, changes in the global macro-economic environment, stagnating global growth and sticky ...
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