InvestorQ : Why does the government asking all the private and public sector companies to front-end their capital spending?
Rutuja Nigam made post

Why does the government asking all the private and public sector companies to front-end their capital spending?

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2 weeks ago
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For a start, the finance minister has asked ministries to front-load their FY22 capital expenditure plans. The idea is to leverage this capex to revive growth in the Indian economy. The FM urged ministries to expedite infrastructure investment and pending projects and also front-end big investments to have a catalytic impact on growth. Budget already has a capex target of Rs.5.54 trillion as laid out in the Union Budget for FY22.

FM also urged the ministries to actively get such projects funded through innovative structuring and financing and also explore private-public partnerships model to share the risks of such mega projects with adequate returns. Even the private sector oil companies are being asked to push through their big capital investment decisions so that such moves have a salutary impact on growth.

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