image sourced from original article at The central government will retain its planned capital expenditure of Rs 12.22 lakh crore this fiscal year despite rising fiscal stress linked to the ongoing conflict in West Asia. A senior finance ministry official said capital spending will remain a priority to sustain growth, even as the economy faces multiple pressure points in the months ahead.
Tax collections are expected to come under strain, particularly after the recent cut in excise duties on petrol and diesel to cushion consumers from rising global crude oil prices. The reduction is estimated to significantly impact government revenues, adding to fiscal challenges.
Global uncertainties have intensified after crude oil prices surged sharply following the outbreak of war in West Asia. As a major importer of petroleum products and liquefied petroleum gas, India faces heightened vulnerability, especially with key supply routes affected. Despite these headwinds, the government said it remains committed to funding infrastructure sectors such as highways, railways, ports, shipping and urban development.
Officials said fiscal discipline in recent years has strengthened the country's ability to manage current uncertainties, and the government will ensure that planned capital spending continues at the budgeted level despite emerging stress points.
