The telecom department and the ministries of defence, railways, and highways are among the key sectors witnessing reduced capital expenditure this fiscal year. The department of economic affairs (DEA) also reported slower spending up to November.
Data from the Controller General of Accounts reveals that during April-November 2023, the Department of Telecommunications (DoT) utilized only 6% (₹5,424 crore) of its annual allocation of ₹84,496 crore. Most of the proposed expenditure is earmarked for supporting public sector undertakings (PSUs), but these funds remained unreleased during this period. Disbursement to PSUs is tied to milestone achievements and specific requirements, and a significant portion of this year’s allocation was designated for such expenditures.
Similarly, the Department of Economic Affairs has spent just 4% (₹2,948 crore) of its ₹66,197 crore allocation. A significant part of this budget falls under “other central sector expenditure,” to be utilized as needed.
Lower government capital expenditure is cited as a factor contributing to the slowdown in economic growth. The government has attributed the reduced spending to election activities during the first quarter. Between April and November, the Centre’s overall capital expenditure reached 49% of the ₹11,11,111 crore annual allocation, compared to 59% utilization during the same period last year, when ₹10,00,374 crore was allocated. This difference amounts to ₹72,195 crore.
Among major sectors, the defence ministry reported capital expenditure at 41% of its ₹1.7 lakh crore allocation, down from 53% during the same period last year. The highways ministry, which has previously sought additional funds, spent 54% (₹1,46,827 crore of ₹2,72,241 crore), a decline from last year’s 68%. This reduction is partly attributed to fewer project awards, a concern highlighted by PM Narendra Modi.
The railways ministry also reported lower spending, with 67% of its allocation utilized compared to 71% in the previous year.
