NEW DELHI: As pre-budget consultations got over on Monday, industry representatives and analysts want the government to continue its thrust on capital expenditure (capex), albeit with a shift in sectoral focus. The general view is that while the government must increase allocation to capex in the budget, it must spend more on creating social sector infrastructure liking housing, health and education.
A delegation of economists who had met the finance minister earlier in December had said the government must keep focus on capex but it needs to diversify the sectors for more positive results. “There is a limit to the benefits to be reaped from spending in roads, railways, and defence,” said one of the economists on condition of anonymity. The delegation has suggested the government spend more on sectors like affordable housing. Rumki Majumdar, economist with Deloitte, says focus should be on building physical, digital and social infrastructure.