Govt must aim to cap capex at 3% of GDP, says economist NR Bhanumurthy
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Govt must aim to cap capex at 3% of GDP, says economist NR Bhanumurthy

In the current economic scenario, where there are concerns about the government's capital spending avenues reaching limits, economist N.R. Bhanumurthy said it is time to revert to the Fiscal Responsibility and Budget Management Act and to keep capital expenditure at 3% of GDP going forward. "... in 2024-25 (Apr-Mar) it is somewhere around 3.3%. Now we should look at the 3% target so that 0.3% funds will be available for the private investors," Bhanumurthy, director of Madras School of Economics, said.

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