Department of Economic Affairs Secretary Anuradha Thakur said public capital expenditure has risen from 2 lakh crores in 14-15 to a budget of about Rs 12 lakh crores this year. The statement was made in Delhi.
Including grants to states for capital creation, effective capital expenditure is Rs 17.15 lakh crores, according to Thakur. The broader figure includes support directed towards state-level capital formation.
Measures to attract private investment
Thakur also pointed to targeted schemes intended to encourage private-sector investment. These include public-private partnership arrangements supported through viability gap funding.
She said plug-and-play investment parks have become successful across several sectors. The model has expanded from semiconductor, electronics and textile parks to chemical parks and biopharma parks.
According to Thakur, these parks are showing promising results in attracting both global capital and domestic capital. She also referred to production-linked incentive schemes operating across various sectors, describing a couple of them as extremely successful.
What the spending figures include
The public capital expenditure figure refers to the budget of about Rs 12 lakh crores for this year. The effective capital expenditure figure of Rs 17.15 lakh crores additionally includes grants to states for capital creation.
The investment approach described by Thakur combines public spending, state capital-creation grants, partnership funding, investment parks and production-linked incentives. The stated objective is to support private-sector participation and attract capital.
Conclusion
Thakur's remarks highlight the increase in public capital expenditure and the use of investment-focused schemes, parks and incentives to support capital creation and attract domestic and global funding.
Frequently Asked Questions
Q. Who made the statement?
Anuradha Thakur, Secretary of the Department of Economic Affairs, made the statement.
Q. How much is budgeted for public capital expenditure this year?
The budget is about Rs 12 lakh crores.
Q. What is the effective capital expenditure figure?
Including grants to states for capital creation, effective capital expenditure is Rs 17.15 lakh crores.
Q. Which funding mechanism was mentioned for public-private partnerships?
Thakur referred to viability gap funding in the PPP space.
Q. Which sectors are covered by the investment parks?
The parks include semiconductor, electronics, textile, chemical and biopharma parks.
Q. What other investment-support measure was mentioned?
Thakur referred to production-linked incentive schemes across various sectors.
