An opportunity in capex decline: Scrap new schemes, BSNL equity infusion

Not too many tears would be shed for a squeeze on capex if the hit is primarily on infusing equity into a state-owned enterprise and on new schemes that are yet to be announced

The Union government’s capital expenditure (capex) continues to be a cause for concern. Of course, the extent of its decline has reduced somewhat — from 35 per cent at the end of the first quarter of the current financial year to 15 per cent at the end of six months. But the latest number for the April-November 2024-25 period shows that the Union government’s capex was still 12 per cent lower than what it was in the same period of 2023-24. Instead of aiming for the targeted 17 per cent growth to Rs 11.11 trillion in capex for 2024-25, the