MUMBAI: Chief Economic Advisor V Anantha Nageswaran stated on Friday that the government is dedicated to ensuring that capital expenditure (CAPEX) will continue to sustain the economic growth momentum restored following the third COVID-19 wave. To strengthen the real economy, the government has taken a number of actions, including decreasing taxes, continuing privatisation, establishing organisations to sequester and manage bad loans, and initiating an asset monetization programme.

'Given the ongoing sense of uncertainty among private sector participants, both in the banking and non-banking realms, the government is committed to ensuring that capital expenditure continues in such a way that the growth impulse that we have regained after the third wave is not surrendered," Nageswaran said at a Financial Express banking event. 

While capital spending was projected at Rs 6 lakh crore in the previous fiscal year, the government only spent Rs 5.92 lakh crore. "Thus, if the government is able to execute the capital spending of Rs 7.5 lakh crore for the current fiscal year, that will be the largest genuine economic intervention," he said.

He said the banking industry plays a critical role in sustaining the existing economic scenario and converting the country's current relative advantage into a source of absolute growth advantage over other countries.

CBDT issues new guidelines on applicability of new TDS

India better placed to avoid stagflation in on recovery track: RBI

GST Council to meet in Srinagar on June 28, 29