FM Rules Out Capex Cuts Despite GST 2.0 Concerns

Finance Minister Nirmala Sitharaman ruled out any cuts in capital expenditure despite revenue concerns emerging from GST 2.0 reforms. She stressed that the government will continue to prioritize infrastructure spending, as capex drives economic growth, employment, and long-term competitiveness. The GST overhaul, which reduced rates on many goods and services, has raised questions about revenue sufficiency for both Centre and states. However, Sitharaman expressed confidence in widening the tax base, improved compliance, and buoyancy offsetting short-term concerns. Economists view the stance as reaffirming the government’s commitment to fiscal prudence while maintaining growth momentum. The decision signals that infrastructure investments will not be compromised even amid evolving tax structures.