As subsidy spending rises, finance ministry sees no compromise on capex

Officials say no rejig of expenditure at a time when reviving growth is priority

Though the 2022-23 fiscal year has just begun, the Centre’s welfare and subsidy expenditure is already expected to overshoot targets.

Even then, there will be no rejig of expenditure and no compromise on capital expenditure, said finance ministry officials.

At a time when reviving growth is the government’s top priority, capex is more important than fiscal deficit for the finance ministry.

“Usually, fiscal deficit is the priority. This time, the message from the leadership is that capital expenditure should be the priority. There will be absolutely no compromise on welfare and scheme spending and on capex,” a senior government official told Business Standard.

Fiscal