‘Minimize, No Minimize’: Sitharaman Will get Into ‘Arithmetic’ Struggle With Chidambaram Over Capital Expenditure – News18
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Senior Congress chief P Chidambaram questioned why the Centre has denied a discount within the capital expenditure, to which Union finance minister Nirmala Sitharaman stated his claims are “deceptive” and “based mostly on flawed comparisons”
Quickly after giving her reply in the course of the Query Hour within the Rajya Sabha to senior Congress chief P Chidambaram (R), FM Nirmala Sitharaman received into a light back-and-forth with him on social media. (Picture: PTI/File)
Union finance minister Nirmala Sitharaman on Tuesday stated the capital expenditure has not been minimize, however has gone as much as Rs 11.21 lakh crore for 2025-26 fiscal, and there was proportional improve in loans given to states for capital expenditure for a similar yr.
However, quickly after giving her reply in the course of the Query Hour within the Rajya Sabha to former finance minister P Chidambaram, she received into a light back-and-forth with him on social media. Whereas she stated there isn’t any minimize within the capital expenditure from the earlier fiscal, he claimed the alternative.
Writing a prolonged put up on X, Chidambaram questioned why the central authorities has denied a discount, or minimize, within the capital expenditure for the FY 2024-25. He stated: “It’s easy arithmetic that the federal government has minimize Rs 92,682 crore and Rs 90,887 crore, respectively, below the 2 heads (price range estimates and revised estimates). I requested the explanations for the minimize. The Hon’ble FM denied there was any minimize! I’m speechless.”
Why did the Authorities deny that there was a discount (minimize) within the Capital Expenditure in 2024-25?In response to the Funds paperwork, the BE and RE figures of capital expenditure in 2024-25 are as follows:
Central governmentcapital expenditure:BE: Rs 11,11,111 croreRE: Rs…
— P. Chidambaram (@PChidambaram_IN) April 1, 2025
Sitharaman hit again saying his “selective arithmetic” and “flawed comparisons” could serve political rhetoric, however wouldn’t be useful in relation to “knowledgeable public discourse”. She took a swipe at his tenure, saying the present authorities’s fiscal prudence could also be “unfamiliar from his days in workplace”.
The previous Finance Minister @PChidambaram_IN’s claims of a ‘minimize’ in capital expenditure are deceptive and based mostly on flawed comparisons. Funds Estimates (BE) are ready earlier than the monetary yr begins and naturally evolve into Revised Estimates (RE) based mostly on expenditure…
— Nirmala Sitharaman (@nsitharaman) April 1, 2025
“The previous Finance Minister P Chidambaram’s claims of a ‘minimize’ in capital expenditure are deceptive and based mostly on flawed comparisons… The Authorities’s fiscal prudence stands agency, reflective of floor realities and clear fiscal administration, one thing maybe unfamiliar to Shri P Chidambaram from his days in workplace,” she wrote in an in depth put up on X.
She stated price range estimates (BE) are ready earlier than the monetary yr begins and naturally evolve into revised estimates (RE) based mostly on expenditure developments, implementation capability, and rising priorities. “In FY 2024-25, capital expenditure was influenced by a number of components: the Mannequin Code of Conduct throughout Basic Elections, excessive climate occasions, and lower-than-expected spending by states and sure central businesses. Moreover, many states did not submit utilization certificates, making additional fund releases imprudent. Clearly, the revisions weren’t resulting from fiscal constraints,” she wrote.
The finance minister stated a year-on-year comparability reveals clearly that the capex numbers have risen from BE (2023-24) at Rs 10.01 lakh crore to BE (2024-25) at 11.11 lakh crore. The BE (2025-26) for capex stands at Rs 11.21 lakh crores, which is increased than the one in 2024-25, she stated.
“Equally, the RE (23-24) was estimated at Rs 9.50 lakh crore and the RE (24-25) is estimated at Rs 10.18 lakh crore. This clearly signifies a rise of seven.3%. There was no minimize within the capex of the central authorities. Since 2021, outlays for Capex by the Central Govt have elevated exponentially,” she wrote.
In response to her, capex outlays (BE) since FY 2020-21 are:
FY 2021: Rs 4.12 lakh crore
FY 2022: Rs 5.54 lakh crore
FY 2023: Rs 7.50 lakh crore
FY 2024: Rs 10 lakh crore
FY 2025: Rs 11.11 lakh crore
FY 2026: Rs 11.2 lakh crore
The Union Funds defines capital expenditure, or capex, as funds allotted and utilized by the federal government to develop belongings that contribute to financial progress. This consists of investments in infrastructure, equipment, healthcare, training, and different important sectors.
WHAT DID FM SITHARAMAN SAY IN RAJYA SABHA?
Sitharaman stated the capital expenditure was at Rs 11.11 lakh crore in 2024-25. “Truly, (in) the price range this yr…it has gone as much as Rs 11.21 lakh crore. So, the capital expenditure has not been minimize in any respect,” she stated.
She stated loans to states below the scheme for interest-free 50-year particular help for capital expenditure has gone up proportionately. “So, reducing down the capital expenditure isn’t the case with us,” she added.
Chidambaram sought to know the rationale for discount within the capital expenditure for FY25 within the revised price range estimate to Rs 10,18,429 crore from Rs 11.11 lakh crore. Equally, he identified that the particular help to states was diminished to Rs 2,99,891 crore within the revised price range estimate from Rs 3,90,778 crore for FY25.
Replying to a supplementary on whether or not the Centre screens if states are utilizing the funds for capital expenditure or every other issues, Sitharaman stated: “Not that immediate when the cash is shipped, I might not know whether or not it’s used for capital expenditure.”
Regularly with time lag, varied digital methods by which immediately cash is put in particular nodal accounts for expenditure, the Centre involves know, she stated.
(With PTI inputs)
