The government is poised to exceed its revised capital expenditure (capex) target for FY25 by modest margin, a top official told NDTV Profit.

The capex target if surpassed signalling boost to economy, which is grappling with sluggish demand and consumption. The government’s focus is on boosting growth as India aims to become the world’s third-largest economy by 2030, even though it faces the prospect of a four-year low in growth for the just concluded financial year.

The target was lowered to Rs 10.18 lakh crore in the February Budget, down from Rs 11.1 lakh crore, but the latest figures suggest the final spend could surpass this target by modest number.

For FY26, a capex allocation of Rs 11.21 lakh crore (3.1% of GDP) has been set.

“The data received so far indicates that we are likely to exceed the revised target by a significant margin in absolute terms,” the official said.

The Centre’s Capex for February 2025 saw a sharp 35% year-on-year (Y-o-Y) decline, with the total capex for April-February in the just concluded financial year (FY25) standing at 79.7% of the revised estimate (RE), down from 85% in FY24, according to Controller General of Accounts data.

The slowdown in capital spending during the first half of FY25 was attributed to the elections and the model code of conduct. However, January saw a significant recovery, with a 51% Y-o-Y increase, driven by higher spending on Railways, state transfers, and defense services.

The government’s fiscal deficit stood at ₹13.5 trillion—86% of the FY25 RE for April-February—down from ₹15 trillion in the same period last year.

Gross tax collections for April-February FY25 grew by 11%, with income tax up by 22%, though corporate tax saw a modest 2% increase. Total revenue receipts were 81.2% of the revised estimate, compared to 82% in the same period of FY24.

Net tax revenues for FY25’s first 11 months reached 78.8% of the revised estimate, down slightly from 79.6% during the same period in FY24.

. Read more on Economy & Finance by NDTV Profit.The target was lowered to Rs 10.18 lakh crore in the Budget 2025, down from Rs 11.1 lakh crore, but the latest figures suggest the final spend could surpass this target by modest number.  Read MoreEconomy & Finance 

​NDTV Profit