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‘Capex will be completed as stated in the budgetary planning time… and so will the fiscal deficit,’ Finance Minister Nirmala Sitharaman says in interview with Network18.
Finance Minister Nirmala Sitharaman. (File Photo: PTI)
Finance Minister Nirmala Sitharaman on Friday said the government’s capital expenditure (capex) or fiscal deficit will not be impacted by the latest GST rate rationalisation. She added that the government will adhere to its capex budget estimates and fiscal glide path.
In an exclusive interview with Network18 Group Editor-in-Chief Rahul Joshi, the finance minister said, “At this moment, I can say with confidence that capital expenditure of the government will not come down. It will be completed as stated in the budgetary planning time, the budget estimate time, and so will the fiscal deficit. And, this is the last point of my gliding path. I will adhere to it.
On September 3, the GST Council, chaired by Sitharaman, slashed rates on several items ranging from daily-use products like shampoo and hair oil to automobiles and televisions. The council also simplified the structure to three slabs — 5%, 18% and 40%.
Revenue Secretary Arvind Shrivastava on September 3 said the changes in GST rates will lead to a revenue loss of Rs 48,000 crore on a consumption base of 2023-24.
According to the latest data released on August 29, India’s fiscal deficit in April-July 2025 rose to Rs 4.7 lakh crore, or 29.9 per cent of the full-year target, compared with 17.2 per cent during the same period a year ago.
The government is targeting a fiscal deficit of 4.4 per cent of the GDP for 2025-26, lower than the revised estimate of 4.8 per cent in FY25, while capital expenditure (capex) at Rs 11,21,000 crore is up 10 per cent over the revised aim of Rs 10,18,000 crore for the previous fiscal.
The higher fiscal deficit reflects a sharp rise in capital spending, as the Centre spent Rs 3.5 lakh crore on capex, or 30.9 per cent of the target until July, compared with 23.5 per cent in the same period last year.
According to the latest data available, the government’s capex in the first quarter of 2025-26 (Q1FY26) reached Rs 2.75 lakh crore or 24.5 per cent of the Budget Estimates (BE), higher than the 16.3 per cent recorded in Q1FY25 due to the model code of conduct, showed data released by the Controller General of Accounts (CGA) on Thursday.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
September 05, 2025, 16:55 IST
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