💨 Abstract

As the Union Budget 2026 nears, public capital expenditure remains crucial but its effectiveness is waning. While it has stabilized the economy post-pandemic, its impact on private investment and industrial demand is diminishing. Public spending on infrastructure like roads and railways has not significantly boosted manufacturing capacity utilization or private investment. Structural issues, including long gestation periods for projects, inconsistent consumption growth, and policy uncertainty, hinder private sector expansion.

Courtesy: theprint.in