MUMBAI: Finance Minister Nirmala Sitharaman projected the government’s expenditure on capital formation to rise 34.5 per cent to Rs. 5.54 lakh crore in the fiscal year 2021-22, which came as good news for stocks of capital goods companies like Larsen & Toubro.
The BSE Capital Goods index rose 1.2 per cent after the announcement led shares of sector leader L&T.
The government said that it will provide a further Rs 2 lakh crore to states for capital expenditure over and above its own commitment.
The finance minister said that the government will launch a national asset monetisation pipeline which includes the sale of oil and gas pipelines, power transmission lines and operation of toll roads under the National Highway Authority of India.
The finance minister provided Rs 1.18 lakh crore to the road ministry for 2021-22, including the highest ever outlay of Rs 1.08 lakh crore on capital investment.