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Central government's capital expenditure will increase by 25% in the second half of FY 2025, claims Jefferies
Capex, Jefferies Report: According to a Jefferies report, despite the rise in populist schemes during elections, the central government is committed to investing in infrastructure development. The report says that the spending priorities of the central government show a balanced approach. Let's know what else Jefferies has said.
According to a Jefferies report, the capital expenditure of the central government is expected to grow strongly by 25% on a year-on-year basis in the second half of FY 2025. The report also says that the total expenditure of the government may also increase by 15%. Despite the rise in populist schemes during elections, the central government is committed to investing in infrastructure development. According to the report, while populist policies have gained momentum, especially during state elections, the spending priorities of the central government show a balanced approach.
Jefferies also expects 15% on-year growth in the Centre's overall spending in the second half of the fiscal year to March 31, 2025, and over 25% rise in capex. Capital expenditure in actual terms would continue to emerge higher despite populist policies.
The rising rate of success of freebies within state elections, including Maharashtra's welfare program pegged at Rs 460 billion annually, about 1.1% of the state GDP, raises concern on the notion of populism, the report said.
