ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
Article: The article discusses trends in public investments
Important facts:
- Types of public investments:
- Central government expenditure
- State government expenditure
- Internal and Extra Budgetary Resources (IEBR): constitutes the resources raised by the PSUs through profits, loans and equity.
Trends:
- Fixed investments grew 12.3% on average in real terms in the last three quarters of the current financial year
- Overall investment ratio (share of gross fixed capital formation in GDP) rose to 31.4% in fiscal 2018 from 31.1% in FY 2017 and 30.3% in FY 2016
- The share of the government’s investment in GDP rose from 3.5% in FY2012 to 4.2% in 2017.
- Centre’s role in capital spending has been low and declining while states and IEBR of PSUs have been largely funding public investments.
- share of states in capital expenditure (CAPEX) has risen from 32.6% in FY2010 to 43.4% in FY2018.
- Uttar Pradesh, Bihar, Karnataka, Telangana, and Maharashtra — accounted for about 50% of the capex of the states for fiscal years 2016 and 2017
Note: Capex at the state level is defined as the sum of capital outlay, and loans and advances.
