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The Economic Times

Business / The Economic Times

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Borrowing to build: Govt bets on capex as fiscal deficit stays on track

Government borrowing is increasingly financing capital expenditure, boosting economic growth potential as effective capital spending surpasses the fiscal deficit. Conservative tax revenue growth, alongside non-tax receipts and asset sales, provides a cushion. While revenue spending is managed, a slight increase in the budget size is observed, with a focus on easing the debt burden towards targets.

2 Feb 2026 12:07 am