Archive · 5 Jun 2025
Government Could Increase Capex by Rs 0.8 Trillion in FY26: ICRA
The government has more money to spend because the economy is doing better and the Reserve Bank of India (RBI) is giving them a bigger dividend.
This extra money, about 0.8 trillion rupees, can be used to increase spending, especially on things like building roads and infrastructure.
The government's debt is under control.
The improved economy has allowed the government to have extra funds, so they can choose to invest in projects.
This is a good sign for the country's finances.
Government has extra Rs 0.8 trillion for capex in FY26, says ICRA.
Higher GDP and RBI dividend payout provide fiscal space.
If fully used for capex, it could rise to Rs 12.0 trillion.
Fiscal deficit contained at 4.8% of GDP in FY2025.
Decline in revenue deficit and rise in non-debt capital receipts helped.
- Who
- ICRA
- What
- Government may increase expenditure.
- When
- FY2026
- Where
- India
- Why
- Due to higher GDP and RBI dividend payout.
- Extra Capex in FY26
- Rs 0.8 trillion
- FY2025 Fiscal Deficit
- 4.8% of GDP
- FY26 Nominal GDP Growth
- 9.0%
- RBI Dividend Cushion
- Rs 0.4 trillion
