Union Budget 2025-26: Capital Expenditure Allocation
The Union Budget presents the government's financial strategy for the upcoming year. A significant part of this strategy involves Capital Expenditure (Capex), which refers to the money spent on creating assets that will benefit the economy over a longer period. Examples include spending on roads, bridges, ports, airports, and other infrastructure projects.
Investing in Capex is seen as a key driver for economic growth, creating jobs, and improving the country's competitiveness. It lays the foundation for future development.
Capex Target for FY 2025-26
As per the details announced in the Union Budget 2025–26, the government has set a specific target for its capital spending in the Financial Year (FY) 2025-26. This allocation signifies the government's priority towards infrastructure development and its expected multiplier effect on the economy.
The amount earmarked for Capital Expenditure (Capex) for FY 2025-26 is $11.21$ lakh crore.
This financial commitment is intended to:
- Boost infrastructure development, including transportation and logistics.
- Support industrial and economic growth through enhanced asset creation.
- Improve overall public infrastructure quality.
- Encourage private sector investment in infrastructure.
Focusing on capital expenditure is a common strategy for governments aiming for sustained economic development and modernization.
Important Questions from Economy
The Five Year Plan was first launched in
Which of the following was/were the feature(s) of Lenin’s New Economic Policy (NEP) for the Soviet Union?
1) Private retail trading was strictly forbidden
2) Private enterprise was strictly forbidden
3) Peasants were not allowed to sell their surplus
4) To secure liquid capital, concessions were allowed to foreign capitalists, but the State retained the option of purchasing the product of such concerns
Select the correct answer using the code given below:
Which one of the following was set as a target of average growth of GDP of India over the plan period 2012-2017 by the Approach Paper to the Twelfth Five year Plan?
In ________ economies, all productive resources are owned and controlled by the government.
Private ownership of the means of production is a feature of a _______ economy.
