Budget 2023: Total capital outlay increased 33% to Rs 10 lakh crore

Finance Minister Nirmala Sitharaman has increased the country's total capital investment outlay by 33 percent from last year to Rs 10 lakh crore.

The allocation amounts to 3 percent of the country's GDP.

With this allocation, the effective capital expenditure will be Rs 13.7 lakh crore or 4.5 percent of the GDP.

The minister also said that interest-free loans to state government have been extended by another year. This will cost the exchequer a sum of Rs 1.3 lakh crore.

Ratings agency ICRA said that the increase in capital oulay is a big positive not only for the construction sector, but also for capital goods and engineering plays, who will benefit through the increased order book.

The increase in capital outlay is also positive for both ferrous and non-ferrous metals.

With regards to the interest-free loans to state governments, ICRA said that its efficiency will depend on the speed of the offtake.