Budget Battle 2025 – Consumption vs Capital Investment : Omniscience Capital

Over the past decade, India’s budget has demonstrated a strategic focus on capital expenditure (Capex) to drive infrastructure development and economic growth. The analysis of budgetary allocations reveals a significant increase in Capex, with a compound annual growth rate (CAGR) of 14.9% over the past ten years. This growth underscores the government’s commitment to long term development, as evidenced by the rise in Capex as a percentage of the total budget from 19% in 2019-20 to 31% in 2025-26. While the tax rebate stole the limelight in the budget discussions, we believe with nearly INR 16 lakh crores (USD $180 billion) of capital investments remain the most important key allocation in the budget.