Higher capital expenditure could help states deal with projects: Experts

The Centre’s push for states to increase spending on projects and clear dues through higher capital expenditure is likely to benefit industry in getting dues cleared, according to experts. This is because half the spending on infrastructure is done by states. A few others, however, have questioned the requirement for such borrowings since states are unable to meet their basic spending needs.
 

The central allocation of Rs 25,000 crore, in addition to Rs 4.13 trillion given in the Union Budget, would be provided to states for capital expenditure on roads, defence, water supply, urban development and domestically-produced capital equipment. This