Budget 2021: Govt may raise capex outlay to revive demand and boost growth

Analysts say it could be 10% more than allocation for FY21

Capital spending will remain a key focus area for the government in the upcoming Budget to revive demand and boost growth as the economy grapples with recession.
 

Improved revenue collection, coupled with rationalisation of central schemes and centrally sponsored schemes, will make way for higher outlay towards infrastructure and asset creation in 2021-22, in a bid to spur job creation.
 

After the first half of 2020-21 saw a 27 per cent decline in capital expenditure, Finance Minister Nirmala Sitharaman reiterated the government’s resolve to increase spending without worrying about the fiscal deficit.
 

In line with that commitment, capital expenditure grew