CAPEX of CPSEs Finance Minister holds 5th review meeting | UPSC CURRENT AFFAIRS
CAPEX of CPSEs Finance Minister holds 5th review meeting
Why in News?
- Finance Minister Nirmala Sitharaman today held a Video Conference with Secretaries of the Ministries of Power, Mines and Department of Atomic Energy and the CMDs of 10 Central Public Sector Enterprises CPSEs of these Ministries, to review the capital expenditure (CAPEX) in this financial year.
What is Capital Expenditure in simple words?
- The Union government defines capital expenditure as the money spent on the acquisition of assets like land, buildings, machinery, equipment, as well as investment in shares.
What are the examples of Capital Expenditure?
- Capital expenditure is the part of the government spending that goes into the creation of assets like schools, colleges, hospitals, roads, bridges, dams, railway lines, airports and seaports.
- Capital expenditure also covers the acquisition of equipment and machinery by the government, including those for defence purposes.
- Capital expenditure also includes investment by the government that yields profits or dividend in future.
Why is Capital Expenditure important?
- High capital expenditure usually means more investment by the government towards the creation of infrastructure and other assets that are crucial for rapid economic growth.
- Capital expenditure means construction of roads, highways, dams, bridges, ports, airports and railway lines.
- India experienced low growth rates for decades as it failed to develop physical and social infrastructure, the key to achieving high economic growth.
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