Finance Minister Nirmala Sitharaman will be holding a meeting with secretaries and financial advisors of key selected ministries to review the total capital expenditure by the ministries in FY20 so far on Friday.
Finance Minister Nirmala Sitharaman will be holding a meeting with secretaries and financial advisors of key selected ministries to review the total capital expenditure by the ministries in FY20 so far and plan for future roadmap in current fiscal on Friday in New Delhi. It comes days after the government announced a slew of reforms including cut in corporate tax rate and further bank recapitalisation. The government has earmarked Rs 5.38 lakh crore for capex in budget for FY20 through internal and extra budgetary resources (IBER), which is mainly taken up by the central public sector enterprises (CPSEs).
Economic Affairs Secretary Atanu Chakraborty and Expenditure Secretary Girish Chandra Murmu, earlier this month, met officials from the ministries of road transport and highways, railways, telecom, and housing and urban affairs to review their capex programme. In FY19, the government had budgeted Rs 6.12 lakh crore for the same purpose in the budget. The government is on a drive to boost the sagging economy in the last few weeks after it recorded a dismal 5 per cent growth in the first quarter of the ongoing fiscal. The economy printed its slowest growth in over six years on account of slowdown in demand.
On Thursday, Finance Minister Nirmala Sitharaman said that there is no issue of liquidity in the economy and even the demand is picking up. “On the whole, it was very tonic-like meeting, where I heard a lot of positive things. Not one voice said there was a concern, shortfall of demand. None of them voiced liquidity concerns,” she said in the press conference. From the meeting, it can be made out that demand is steadily increasing. In the later half of the year, things are expected to look-up and pep-up every other sector, Nirmala Sitharaman said.