State’s capital spending healthy so far in 2021

However, sustaining the capital expenditure level would be challenging: Analysts

Tamil Nadu has spent ₹16,493.37 crore till October 2021 towards capital expenditure, which is about 39.1% of ₹42,180.96 crore, budgeted for 2021-22, according to provisional figures of Comptroller and Auditor General (CAG). Capital expenditure includes capital outlay which leads to the creation of assets such as schools, hospitals, and roads and bridges and helps in improving economic activity and creating jobs.

Capital expenditure also includes repayment of loans. Analysts said while the current trend is healthy, sustaining the level of capital expenditure would be challenging going ahead.

The State’s capital expenditure for the current fiscal is budgeted to be around 14% of its total expenditure. The capex spending so far is better than previous year, wherein 29% of the budgeted amount was incurred, Kavita Chacko, senior economist, CareEdge pointed out.