Capex not accelerating but moderating in Budget; govt has to do the heavy lifting: Bernstein’s Venugopal Garre

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February 6, 2023
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The banking sector will be generally a bit careful about lending to private sector, especially if it is linked to infra, said Venugopal Garre, Managing Director at Bernstein’s.

The banking system will be generally a bit careful about lending to private sector, esspecially if it is linked to infra. So the heavy lifting has to be done by the government.

The most important takeaway in this year’s Budget, according to Venugopal Garre, Managing Director at Bernstein, is that capex is actually not accelerating but moderating.

“There is the accounting aspect in the Budget that one needs to be careful of and if you look at the infra part, which accounts to 75-80 percent of the Rs 10 lakh crore number that we see, it is actually going to be up only 20 percent YoY compared to 31 percent growth in the previous year. The reality is that this is happening primarily on the account of the fact that you have these extra Budgetary resources,” Garre told CNBC-TV18 in an interview.

“Private sector capex was not expected to be great this year. The banking sector will be generally a bit careful about lending to the private sector, especially if it is linked to infra. So the heavy lifting has to be done by the government,” he said.

ALSO READ: Govt to meet fiscal target in coming year, capex a longer shot: Poll

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