Finance Ministry to ask PSUs to speed up capital expenditure

As part of its efforts to revive economy, the finance ministry will ask the heads of the central public sector enterprises (CPSEs) to expedite the capital expenditure.

The ministry will hold a meeting with the heads of the central public sector enterprises (CPSEs) on Friday.

The meeting, which will be chaired by expenditure secretary G C Murmu, will review the progress made by the CPSEs on the capital expenditure front and also ask them to speed up their capital expenditure for the current year.

During the April-June quarter, the capital expenditure was 31.8% of the Budget estimate, as compared to 37.1% in the year-ago period, as per the report of Controller General of Accounts. The government has a capital expenditure plan of Rs 3.3 lakh crore during the current financial year.

Since the investment from the private sector is not forthcoming, the sources said the government and CPSEs are the biggest spenders that play a major role in boosting liquidity and demand.

Today’s meeting will be part of the series of meeting being held at the finance ministry to find ways to reinvigorate the sagging economy, which hit over 6-year low of 5% during the first quarter of the current financial year.