Economic Survey: After slowing down in H1, capex picks up in Dec quarter

Stimulus measures announced so far during FY 22 include liquidity enhancing and investment boosting measures such as PLI, credit guarantee schemes and export boosting step, survey says

Capital expenditure by the government has revived in the December quarter of the ongoing financial year after witnessing a slowdown in the first half of the current financial year due to restrictions imposed by the government to stop the spread of Covid-19 pandemic, the Economic Survey said.

“On the fiscal front, capital expenditure was restrained during Q1 (June quarter) and Q2 (September quarter) of 2020-21 owing to movement restrictions in containment zones, and unavailability of contractors/workers to carry out capital works. However, with the easing of movement and health-related restrictions, capital spending was pushed up in Q3 (December quarter) of