Most of the rise has been in revenue expenditure, although in percentage terms, the increase in capital expenditure is much higher. The accompanying chart shows that the central government has given a substantial fiscal stimulus to the economy in fiscal year 2018 (FY18). This rise in government capex (capital expenditure), along with brownfield expansion in the private sector, has been supporting investment demand. Either the government has pruned the deficit dramatically in March, or there will be a slippage in the fiscal deficit for the year. For FY19, the government has budgeted for a mere 4.9% increase in the fiscal deficit amount, from the revised estimates.

Source: Mint March 29, 2018 03:00 UTC