Govt may not sharply hike FY26 capex outlay to keep fiscal deficit in check
Given the limited space for further compression in revenue expenditure, the government would refrain from sharply raising its FY26 capex outlay from the budgeted level for this financial year, another person indicated. The Centre also expects private investments to strengthen further next fiscal, leaving it with leeway to cut the pace of capex hike without jeopardising growth. For a second straight year through FY25, actual capex could fall short of the target by more than Rs 50,000 crore.
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