Government targets higher capital spending in next budget amid fiscal gains and optimism

Now that they have won plaudits for the fiscal scorecard, top decision-makers in the government are determined to make a concession on the capex numbers. The Union Budget to be tabled in Parliament on July 23 will include a much higher outlay for capital expenditure than the Rs 11.1 trillion projected in the interim budget on February 1.

India’s fiscal math was something of a certificate of good conduct. A good scorecard meant little, except the political headache of failing to meet expectations of higher subsidies in the short term, usually three years or more. As elections approached, the certificate