Lavasa emphasises on need to increase public investment, for which bold steps will be taken by govt to recapitalise banks.
New Delhi: Finance Secretary Ashok Lavasa on Wednesday highlighted over a possibility by the public sector undertakings (PSUs) to increase their capital expenditure in the current financial year, adding that there could be an upward revision in capital formation in the second half.
"As highlighted by the Finance Minister yesterday, we are working on the recap bonds. The plans span across two financial years, i.e. this year and the next year. We are working on the first trench of the bond," Lavasa told reporters here.
He further stated that during the first six months of the financial year, the expenditure that the government undertook was around Rs. 1, 22,000 crore, which is close to around 46 percent of budgetary estimates.
Adding to this he highlighted the economy's growth to be bolstered by policies like the Bharatmala project and the Pradhan Mantri Awas Yojana.
Earlier on Tuesday, Finance Minister Arun Jaitley announced an unprecedented PSU banks recapitalisation program of Rs 2.11 lakh crore, out of which Rs. 1.35 lakh crore will come from recap bonds, and rest from markets and budgetary support.
"To improve the lending capacity of the banks, we have announced the recapitalization programme, which is essential to increase public spending on infrastructure, and that expenditure on infrastructure," Jaitley said at a conference here.
Further, he emphasised on the need to increase public investment, for which bold steps will be taken by the government to recapitalise banks in the country.