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 â‚ą2.1 trillion in Q3 FY26, compared with â‚ą3.1 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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