Government Companies Will Spend 48,000 Crores By December

Government companies will spend 48,000 crores by December, an important expenditure incurred by these companies to bring the economy back on track.

There is an all-round effort to increase consumption in the country’s economy. Under this, 14 Government companies have now been directed to accelerate capital expenditure.

These companies can spend Rs 48,000 crore under their capital expenditure by the end of December this year. On Monday, Finance Minister Nirmala Sitharaman reviewed the capital expenditure of these 14 companies.

He said that the capital expenditure of public companies plays an important role in the development of the economy, hence there is a need to accelerate this expenditure.

The costs incurred by these companies can play an important role in driving the economy out of the ill effects of the Corona crisis.

By the third quarter (October-December) of the current financial year 2020-21, 75% of the targeted capital expenditure for these companies should be spent.

He instructed the concerned secretaries to supervise it with instructions to make a proper plan for this expenditure.

The Finance Minister also said that to achieve the target of capital expenditure, coordination between the Chairman and MD (CMD) of the Central Public Sector Undertaking and the Secretary of the Ministry concerned should be improved.

According to the Finance Ministry, the capital of these companies in the current financial year A target of Rs 1,15,934 crore has been set for the expenditure. 75% of this amount is about 85,000 crores which are to be spent by December.

Till the first half (April-September) of the current financial year, only 32 percent i.e. Rs 37,423 crore was spent. Thus by December, these 14 companies will have to spend Rs 48,000 crore.

In the last financial year, these 14 companies had spent Rs 1,16,323 crore as a capital expenditure while their target was Rs 1,11,672 crore.