On track: Railways capex target reached more than 75% this month as of third quarter of fiscal year 2023-24

The two largest infrastructure sectors – road transport, highways and railways – used more than 75% of capital expenditure in the first nine months of the financial year. Official data shows the Road Transport Ministry leads the way with about 84% of capital expenditure.

According to the ministry’s data, the railways had spent Rs 1.95 billion, or about 75%, of Rs 262 crore in revenue in the current fiscal year as of the end of the third quarter.

The Ministry of Road Transport and Highways (MoRTH) has spent Rs 215 crore (84 per cent) by December 2023, compared to the expected expenditure of Rs 258 crore in 2023-24. A total of Rs 5.2 billion was allocated to the two ministries, of which Rs 4.1 billion, or about 80%, had been spent by the end of December.

The Finance Ministry has shared the annual capital expenditure targets of selected central public sector enterprises (CPSEs) and their achievement, with annual capital expenditure targets of Rs 100 crore and above.

“As against the projected expenditure of Rs 733 crore (budget estimate), the achieved results were Rs 551 crore (approximately) – approximately 75.09% as on December 31, 2023. Against the projected capital expenditure of Rs 6.62 lakh, the achieved results were Rs 45 Crore. This figure stood at 67.99 per cent for the corresponding period ended December 2022,” the filing reads.

Capex utilization ahead of the third quarter is critical as India will hold Lok Sabha elections at the end of the fourth quarter of the current financial year. The polls will be held around April-May and the term of the Lok Sabha ends in May.

In the interim budget presented earlier this month, the finance ministry allocated a large sum of Rs 11,111,110 million to continue its focus on infrastructure development. Expenditure in 2024-25 will be 3.4% of GDP.

Among ministries, defense has the highest allocation of Rs 6.2 billion, followed by Transport Ministry with Rs 2.78 billion. Railways, which ranked third, received an allocation of Rs 255 crore.