Finance Minister Nirmala Sitharaman said India’s strong focus on capital expenditure is yielding visible results, with most states actively pursuing infrastructure projects and efficiently utilising funds under the Centre’s 50-year interest-free loan scheme.

She said states that met the conditions to access half of the tied funds were rewarded with higher allocations, and many had already completed key projects.

Citing an RBI study, Sitharaman noted that India’s sustained growth momentum reflects the “multiplier being higher when we spend on capex versus revenue expenditure.” She added that the government’s fiscal prudence and push for productive spending are reinforcing long-term growth.

On tax administration, the minister said the integration of data analytics and AI has strengthened

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