Capital expenditures of government entities may stabilize at Rs 7.8 lakh for fiscal 26

New Delhi: Capital expenditures for large central public sector enterprises (CPSEs) and four major government entities are likely to remain stable during this fiscal year and support wider economic activity.

These CPSE and government entities have set their total capital expenditure target for fiscal 26 at Rs 7.85 crore, which is almost comparable to the actual expenditure of the previous fiscal, exceeding the revised target of Rs 787.7 crore.

The official emphasized that the latest goal is a bit conservative and that it may be as eclipsed as it did in the last fiscal year.
He said CPSES and large government agencies have an annual capital expenditure target of at least Rs 1,000 crore, or Rs 4481 crore, slightly lower than Rs 50,206 crore in the same period last year.

In addition to CPSE, the data covers the Railway Commission, the National Highway Administration of India (NHAI), the Delhi Metro Company and the Damodal Valley Company.

Given the high multiplier effect of this expenditure, CPSE and entity continued spending are crucial to stimulating growth.

In April, the Railway Commission led the way with capital expenditure of Rs 25,327 crore, followed by NHAI (Rs 73,59 crore), ONGC (Rs 2,666 crore), NTPC (Rs 2,226 crore) (Rs 2,226 crore) and Indian Oil Corporation (Rs 2,102 crore). In the last fiscal year, railways, NHAI and oil companies were the main expenses.
The Centre is likely to have achieved its revised target for fiscal 25, scaling it to Rs 1,018 crore from the budget estimated Rs 1,111 crore.