capital expenditure news: which departments are lag in capex:

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capital expenditure news: which departments are lag in capex:


  • Telecom department spent only 12 percent of the total allocation
  • Power Ministry spent only 3% of its share amount
  • Railways, Road, Urban Development and Defense Ministries performed better
  • The police department spent less than a quarter of its allocation

New Delhi
In the case of capital expenditure, the performance of some departments of the Modi government has been poor so far this year. These include the Telecom Department and the Power Ministry. This is the reason that when Finance Minister Nirmala Sitharaman started the review of capital expenditure, these departments were summoned.

The Department of Telecom (DoT) spent only 12 per cent of the Rs 25,934 crore allocated to it in the first half of this fiscal, according to data from the Controller General of Accounts. The power ministry has spent only 3 per cent of its share. Overall, all the ministries have spent 41 per cent of the amount till the first half.

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Better performance of these ministries
The ministries of railways, roads, urban development and defense have increased the pace of their capital expenditure from April to September. But many ministries have spent less than their entire year’s allocation. The telecom department is among the departments whose performance has been the worst. The Department of Economic Affairs has spent only 1 per cent of the Rs 56,479 crore. But out of the amount allocated to the department, Rs 44,000 crore is for projects and programs that have performed well and need additional funds. Sitharaman has asked departments to speed up their spending. He says that there will be no shortage of funds.

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The Department of Financial Services, a division of the finance ministry, has also spent only 5 per cent of its allocation in the first half. But out of the total allocation of Rs 25,800 crore of the department, Rs 20,000 crore has been earmarked for capital support to the new development financial institution National Bank for Financing Infrastructure and Development.

police department behind
The poor performing ministries in terms of capital expenditure include the Ministry of Power, Information Technology and Micro, Small and Medium Enterprises and the Department of Ganga Rejuvenation. The police department is also one of the least expensive departments. Rs 9700 crore has been allocated for this, but according to official figures, the department has so far spent less than a quarter of it.

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