CAPEX: Government utilized only 37.28% of effective capital expenditure in first half of FY25

According to data released by the Ministry of Finance, the central government has utilized only 37.28 percent of the effective capital expenditure (ECE) provisioned in the budget in the first half of the financial year 2024-25. ECE represents the total capital outlay of the government for the creation of capital assets and related expenditures. It is calculated as the sum of capital expenditure and grants for the construction of capital assets.

The Finance Ministry said, "Effective capital expenditure in the first half of FY 2024-25 was Rs 5.60 lakh crore" For the financial year 2024-25, the government had estimated the ECE at Rs 15.02 lakh crore in the budget. This includes Rs 11.11 lakh crore of central capital expenditure, Rs 4.15 lakh crore as direct capital expenditure, and Rs 1.45 lakh crore given to the states as grants for the creation of capital assets.

The Finance Ministry, however, explained that this spending reflects the government's commitment to improving infrastructure and creating durable assets for long-term economic growth. It said the total government Expenditure during the 1st Half of the Financial Year 2024-25 was estimated at Rs 21.11 lakh crore or about 43.8 percent of Budget Estimates. The total budgetary expenditure for FY 2024-25 was estimated at Rs 48.21 lakh crore.