Image Source: economictimes.indiatimes.com
Finance Minister Nirmala Sitharaman has eased the rules for capital expenditure by ministries which were restricted in 2017. It is done to increase the expenditure which can spur the economy to shake off the impact of the previous and the ongoing wave of COVID-19. The FM informed that the restrictions put on the monthly and quarterly spending will not apply to capital expenditure and this will be implemented immediately and till further orders.
The FM has set aside Rs 44,000 crore for the best spender among the different government departments. The plan is to boost the capital expenditure by 26% in the fiscal year. According to RBI, one rupee spent by the government will lead to an increase in the GDP by Rs 3.14.