On Capital Expenditure
The government allocated Rs 7.5 lakh crore for capital expenditure in FY23, up from Rs 6.02 lakh crore in FY22.
As far as the current status is concerned, the capital expenditure for April stood at Rs 78,925 crores, which is 10.5% of the annual target. In April, the rail and road ministries accounted for 75% of the capital spending.
Moreover, the finance ministry aims at achieving a target of at least 60% of FY23 capital expenditure by September 2022 end!
The government kept the disinvestment target at Rs 65,000 crore for FY23. In the ongoing fiscal year, it has raised around Rs 23,575 crore. Rs 20,560 crore came as proceeds from the LIC IPO, and the rest of Rs 3,000 crore came from a 1.5% stake sale in ONGC.
The Union Cabinet has also approved the government's 29.5% stake in Hindustan Zinc Limited to raise around Rs 38,000 crores. Also, the government has plans to sell a 10% stake in Mazagon Dock Shipbuilders Limited, which may fetch Rs 570 crores at current valuations.
Meanwhile, the strategic sale of BPCL is off the cards for now!
What Lies Ahead?
On the disinvestment front, the government's work is on the fast-track lane, with the LIC IPO now a thing of the past. The target for capital expenditure also looks ambitious.
But there were other announcements in the budget too, of which there are no talks from the government's side. With inflation running out of control, supporting the MSME sector and the farmers should be a key priority area for the government!