NEW DELHI: Ajay Seth, secretary of the Department of Economic Affairs, on Wednesday said while there might be a shortfall in the capital expenditure target of Rs 11.11 lakh crore set in the Union Budget, it would still represent a notable increase from the last year’s capital expenditure of Rs 9.5 lakh crore.
According to Seth, while certain sectors are experiencing some sluggishness, others are exhibiting increased demand. Speaking ahead of FICCI’s 97th Annual General Meeting and Convention, he mentioned that last year’s budgeted capital expenditure was nearly Rs 10 lakh crore, with 95% of that target being met. He expressed confidence that this year, the achievement rate should be similar.
In addition to this, Seth also stated, “I do not see any downside risk to the economic growth rate of 6.5-7% estimated in the Economic Survey 2024-25. E-way bills, invoices in October do not indicate any downside risk to the 6.5-7% GDP growth in FY25.” He also highlighted that food prices have been a concern due to climatic factors, but beyond that, inflation is not considered a significant challenge.
Meanwhile, Seth also spoke about the potential economic policies of the US President Donald Trump and their implications for emerging economies.
He stated that the government will strive to capitalise on opportunities for the country, while also emphasising that geopolitical tensions in Ukraine and the Middle East, along with China’s growth trajectory, will be crucial considerations.
He said if China’s domestic demand does not recover, it could create challenges for all economies due to China’s significant manufacturing capacity.