Budget 2024: High Capex Likely For Infrastructure Expansion, Say Brokerages
PM Awas Yojna, Amrut scheme, smart cities, metro, shipping, port and the NHAI likely to gain higher share, says Axis Securities.
The interim Union budget 2024 will have a strong focus on capital expenditure to develop public infrastructure, according to brokerages.
Axis Securities Ltd. expects capex to increase by 10–15% in the next financial year from the Rs 10-lakh-crore target in the current fiscal. The focus is likely to continue on roads, water, metro, railways, defence, digital infrastructure and green technologies.
It highlighted that the private capex, which has been sluggish for the last several years, is expected to receive a much-needed push in the budget, scheduled to be presented by Finance Minister Nirmala Sitharaman on Feb. 1
The PM Awas Yojna, the Atal Mission for Rejuvenation and Urban Transformation, smart cities, metros, shipping, port and the National Highways Authority of India are likely to gain a higher share, according to Axis.
A healthy increment is expected in the next fiscal to achieve the target set under the National Infrastructure Pipeline and the Gati Shakti Master Plan, the financial services firm said.
The capex grew 31% in the April–November period and achieved 59% of the budget estimate in comparison with the last 10-year average of 58.5%, according to PhillipCapital (India) Pvt.
Among the major capex-oriented ministries, the railways (71% of BE) have been the frontrunner, followed by roads (68%). Capex spending is decent among atomic energy (63%), housing (54%) and defence (53%), PhillipCapital said.
