Planned capex as a percentage of total expenditure is at a 9-year high of 6.5%, but lower that what it was in early 2000
India’s planned capital expenditure as a percentage of
total budgetary expenditure has risen to its highest level in nine years
at 6.5%, according to the revised estimate for the current fiscal year.
Plan capital expenditure is used for building infrastructure assets
such as road, bridges, railways, highways, while non-plan capital
expenditure is mainly on defence.
The government seems to have woken up from its long slumber and is
trying to start the investment cycle. Note, however, that Plan capital
expenditure as percentage of total expenditure was 9-10% when the
National Democratic Alliance (NDA) was in power. So, even at 6.5%, the
number is far lower than what it was in early 2000.
“Salaries of government employees have increased
significantly due to the sixth pay commission, higher deficit has led to
increase in the interest burden, subsidies have also gone up and
therefore fixed expenditure or capital expenditure which is
discretionary has been coming down gradually over time,” said Samiran
Chakraborty, head of regional research (South Asia) of Standard
Chartered Bank. But the government had neglected capital expenditure
even during the boom years (see chart).
Devendra Kumar Pant, an economist from India Ratings and
Research Pvt. Ltd, points to another problem. He said that expenditure
is going into building assets, but it is not giving any returns. The
projects have started but are not completed on time because clearances
and linkages are not in place. The cabinet committee on investments
cleared mega projects in the last few months in excess of 4% of gross
domestic product (GDP), but the results will be visible only in the next
fiscal year.
TOUHID HUSSAIN
PGDM 4th SEM
Many
health insurance policyholders have seen their premiums go up 15-35%
in this financial year, as insurance companies, including public sector
firms, revised their premium rates.
"This is primarily due to adverse claim ratio and growing health inflation," says Sandeep Dadia, CEO and principal officer, Aditya Birla Insurance. The increase in claim ratio is the result of charging patterns of hospitals, increasing number of claims and friendlier policy structures with fewer restrictio ..
"This is primarily due to adverse claim ratio and growing health inflation," says Sandeep Dadia, CEO and principal officer, Aditya Birla Insurance. The increase in claim ratio is the result of charging patterns of hospitals, increasing number of claims and friendlier policy structures with fewer restrictio ..
Many
health insurance policyholders have seen their premiums go up 15-35%
in this financial year, as insurance companies, including public sector
firms, revised their premium rates.
"This is primarily due to adverse claim ratio and growing health inflation," says Sandeep Dadia, CEO and principal officer, Aditya Birla Insurance. The increase in claim ratio is the result of charging patterns of hospitals, increasing number of claims and friendlier policy structures with fewer restrictio ..
"This is primarily due to adverse claim ratio and growing health inflation," says Sandeep Dadia, CEO and principal officer, Aditya Birla Insurance. The increase in claim ratio is the result of charging patterns of hospitals, increasing number of claims and friendlier policy structures with fewer restrictio ..
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