To boost capital expenditure (capex) and accelerate economic growth, the government has extended relaxations for capex by ministries and departments. The relaxation of stipulations, announced by the government, aims to streamline the process of executing large-scale projects and provide greater flexibility to the concerned authorities.
According to the government, the relaxation of stipulations for capex has been extended for projects exceeding Rs 500 crore. Previously, ministries and departments were required to seek prior approval from the Finance Ministry for capex projects of this magnitude. However, with the latest decision, such projects will no longer require the Finance Ministry's nod.
Moreover, the relaxation in stipulations for capex has been extended specifically for the second quarter of fiscal year 2023-24 (Q2 FY24). To ensure the continued availability of such relaxations, the government has also said separate advisory guidelines will be issued for capex in subsequent quarters.
It is important to note that capex covers significant releases of grants-in-aid and centrally-sponsored schemes. By extending relaxations for capex, the government aims to encourage ministries and departments to expedite project implementation, leading to improved public service delivery and overall socio-economic development.
