Government utilized 37.28% of budgeted effective capital expenditure in H1FY25

According to data released by the Finance Ministry, the central government has utilized only 37.28 per cent of the budgeted effective capital expenditure (ECE) in the first half of the financial year 2024-25.

ECE represents the total capital outlay of the government for the purpose of creation of capital assets and related expenditure. It is calculated as the sum of capital expenditure and grants-in-aid for creation of capital assets.

“In the first half of FY 2024-25, effective capital expenditure was Rs 5.60 lakh crore,” it said.

For the financial year 2024-25, the government had estimated ECE at Rs 15.02 lakh crore in the budget. This includes Rs 11.11 lakh crore as central capital expenditure, Rs 4.15 lakh crore as direct capital expenditure and Rs 1.45 lakh crore as grants-in-aid to states for creation of capital assets.

The Finance Ministry, however, stressed that the spending reflects the government’s commitment to enhancing infrastructure and creating sustainable assets for long-term economic growth.

Total government expenditure in the first half of the financial year 2024-25 is estimated at Rs 21.11 lakh crore or about 43.8 percent of the budget estimate. The total budget expenditure for FY 2024-25 was estimated at Rs 48.21 lakh crore.

On the revenue account, the government has spent 45.7 per cent or Rs 16.97 lakh crore of the total budget amount of Rs 37.09 lakh crore.

Of this, Rs 1.45 lakh crore was spent on grants-in-aid for capital assets. Rs 27.12 lakh crore was spent on interest payments, defense services (revenue), pensions, major subsidies and grants-in-aid to states and union territories.

Rs 5,15,010 lakh crore was paid as interest on borrowings in the first half of FY 2024-25 against the budget estimate of Rs 11,62,940 crore.

The budget estimate for defense services was Rs 2,82,773 lakh crore, against which Rs 1,45,181 lakh crore was spent in the first half of FY 2024-25.

Rs 6,41,460 lakh crore was budgeted for grants-in-aid to states and union territories, while Rs 2,39,296 lakh crore was allocated in the first six months of the current financial year.

Rs 2,14,658 crore was allocated for major subsidies in H1FY25 against the budgeted amount of Rs 3,81,175 lakh crore.

Ultimately the government paid pensions worth Rs 1,48,989 lakh crore from the budgetary allocation of Rs 2,43,296 lakh crore.