Government Capital Expenditure (Capex)

  • It refers to the outlay of government funds in the form of investments or development spending towards creation of assets for the long term.
  • An example of capital expenditure could be the money spent on Railways or building national highways and roads.
  • A higher capex by government will help generate demand in the economy, attract private investments over longer term and sustain economic growth.
  • By creating long-term assets, the economy is benefitted as it can help generate revenues for many ....
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