Budget 2018: In absence of fiscal space, PSUs to bear the burden of capex

Fixed capital formation, which accounts for 70% of the capital spend, shows a worrying trend

There are two ways of examining the capital outlay figures for FY19. There has been a 12 per cent rise in capital investment, which has gone up by Rs 206.8 billion year on year. 

The other way of looking at it is that the capital outlay for FY18 had dipped by Rs 190 billion. So essentially there is no growth in absolute numbers pencilled in the capital spend in Finance Minister Arun Jaitley’s fifth Budget.

It may have meant less had the base on which the capital outlay rose and fell was substantial. Even after the rise it will be Rs 1.84