Cash-strapped government has cut back on budgetary support to PSUs

Through internal resources, PSUsare expected to finance capital spending of Rs 4.78 trn in 2018-19, marginally higher than Rs 4.76 trn in 2017-18

The Centre has cut budgetary support for capital spending by public sector enterprises (PSEs) to Rs 1.76 trillion in 2018-19, from Rs 1.82 trillion in 2017-18 (Revised Estimates or RE).

However, if recapitalisation to public sector banks is excluded, the picture is not too dismal.

Through internal resources, public sector units (PSUs) are expected to finance capital spending of Rs 4.78 trillion in 2018-19, marginally higher than Rs 4.76 trillion in 2017-18. The capital outlay of PSEs has been pegged at Rs 6.54 trillion in 2018-19, marginally lower than Rs 6.59 trillion in 2017-18 (RE).

Capital spending by PSEs will