According to Goldman Sachs’ economist Santanu Sengpta, India’s fiscal consolidation efforts make “very difficult” to allocate more money for capital expenditure in this financial year.
In the last three to four years, the government has increased the fiscal deficit by increasing the capex, which has traded in other areas. “As we strengthen the deficit, it is very difficult to allocate more for CAPEX,” Sengupta said while talking to NDTV benefits.
However, he credited the government for maintaining capes at 3.1% of GDP, even to tighten fiscal obstacles. He pointed out that some of the burden has shifted to states, while private sector investment is expected to pick up once global uncerties ease. However, in the current environment of fiscal consolidation, “continuous capex is physically challenging.”
The government said that the government remains “unbreakable” in its commitment to fiscal consolidation. The focus of bringing down a loan-to-GDP ratio is important for long-term economic stability.
The government has given a place to promote in the time of economic shock, he said. In that mixture, the budget has done a good job – using macro flexibility while targeting support, they explained the most, they explained.
(Tagstotransite) Budget (T) Goldman Sachs (T) Budget 2025
