New Delhi: Finance Minister Nirmala Sitharaman on Tuesday said the capital expenditure (capex) has not been cut, but has gone up to Rs11.21 lakh crore for 2025-26 fiscal, and there has been proportional increase in loans given to States for capital expenditure for the same year.

Replying during the Question Hour in Rajya Sabha, Sitharaman said the capital expenditure was at Rs11.11 lakh crore in 2024-25.

“Actually, in the budget this year..., it has gone up to Rs11.21 lakh crore. So, the capital expenditure has not been cut at all,” she said.

Loans to States under the scheme for interest-free 50-year special assistance for capital expenditure has gone up proportionately.

“So, cutting down the capital expenditure is not the case with us,” she added. Sitharaman was responding to a question by senior Congress leader and former finance minister P Chidambaram. Chidambaram sought to know the reason for reduction in the capital expenditure for FY25 in the revised budget estimate to Rs10,18,429 crore from Rs11.11 lakh crore. Similarly, he pointed out that the special assistance to States was reduced to Rs2,99,891 crore in the revised budget estimate from Rs3,90,778 crore for FY25.

The Finance Minister further said there has been an increase in release of loans to States since the introduction of the scheme for interest-free 50-year special assistance to States for capital expenditure in 2020-21. For 2020-21, a special assistance of Rs9,912 crore was approved to states, but the actual release was Rs11,830 crore. Similarly in 2021-22, Rs15,928 crore was approved, but Rs14,186 crore was released.