Government Utilizes 37.28% of Budgeted Effective Capital Expenditure in H1 FY25

Focused spending on infrastructure and capital assets underscores the government’s commitment to long-term economic growth.

New Delhi, December 24: The Central Government utilized only 37.28% of the budgeted Effective Capital Expenditure (ECE) during the first half of the financial year 2024-25, according to data released by the Ministry of Finance.

Key Highlights of the Report

• Total ECE Spending in H1 FY25: ₹5.60 lakh crore
• Budgeted ECE for FY25: ₹15.02 lakh crore
  • ₹11.11 lakh crore: Central Capital Expenditure
  • ₹4.15 lakh crore: Direct Capital Expenditure
  • ₹1.45 lakh crore: Grants-in-Aid for Capital Assets

The ECE represents the total capital outlay aimed at building durable capital assets and includes grants-in-aid provided to states for asset creation.

Government’s Financial Performance Overview

• Total Government Expenditure in H1 FY25: ₹21.11 lakh crore (43.8% of Budget Estimate of ₹48.21 lakh crore)
• Revenue Account Spending: ₹16.97 lakh crore (45.7% of the budgeted ₹37.09 lakh crore)

Breakdown of Key Expenditures in H1 FY25:

• Interest Payments: ₹5.15 lakh crore (Against ₹11.62 lakh crore budgeted)
• Defence Services (Revenue): ₹1.45 lakh crore (Against ₹2.82 lakh crore budgeted)
• Grants-in-Aid to States and UTs: ₹2.39 lakh crore (Against ₹6.41 lakh crore budgeted)
• Major Subsidies: ₹2.14 lakh crore (Against ₹3.81 lakh crore budgeted)
• Pensions: ₹1.48 lakh crore (Against ₹2.43 lakh crore budgeted)

Government’s Strategic Focus

The Ministry of Finance emphasized that the spending reflects the government’s commitment to infrastructure development and long-term economic resilience. The emphasis remains on enhancing physical infrastructure, boosting state-level investments, and ensuring timely financial support to key sectors.

Despite being below the halfway mark in terms of ECE utilization, the government remains optimistic about meeting fiscal targets in the latter half of the financial year.