H ow should one assess the recently reported rise in the Union government’s capital expenditure? Has there really been a sharp uptick in such spending? Of course, the headline numbers, based on data released by the Controller General of Accounts, show that the Centre’s capital expenditure has jumped by over 43 per cent to Rs 4.31 trillion in April-August 2025, compared to Rs 3 trillion in the same period of 2024.

Unsurprisingly, this has been hailed as a major positive development that should help sustain and even enhance growth in the months to come, particularly when the private sector is still showing reluctance to increase investment in new projects. Remember that the government had for the first time in the last five years projected a single-digit growth in capex in 2025-26 to just

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