Question
According to government expenditure trends highlighted
in the economic assessment, by how much did Government of India capital expenditure decline year-on-year in Q3 FY26?Solution
Government capital expenditure (capex) declined by 23.4% year-on-year in Q3 FY26, according to the economic analysis cited. The value of capex fell to ₹2.1 trillion in Q3 FY26, compared with ₹3.1 trillion in Q2 FY26. Capital expenditure refers to government spending on infrastructure, assets, and long-term development projects. A decline in capex during the quarter contributed to the moderation in overall economic growth because public investment plays a key role in stimulating industrial activity and infrastructure development.
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