Government expands capex definition to include asset upgrades
after close1 source ↓written by the desknot a recommendation
The Centre plans to widen the definition of capital expenditure from FY28 to include spending on rehabilitating and upgrading public assets. This change aims to enhance the quality of expenditure reporting and reflect growing investments in productive assets. The new rules will also introduce dedicated categories for digital and ICT equipment.
This move is significant as it underscores the government's reliance on public investment as a key driver of economic growth, with capex allocations increasing sharply over the last five years.
Not investment advice. For informational purposes only.