FY25 capex: Highway infra spending gathers pace as telecom, defence lag
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Union ministry of road, transport and highways has regained capital expenditure momentum in the month of December after almost seven months of tepid utilisation of funds towards infrastructure. While the ministry of railways continues with its slow and steady speed, the major drawdown to the capital expenditure utilisation between April and December in 2024-25 has come from sectors like telecom and defence.
In fact, the lag in these sectors could be the reason behind the government lowering the revised estimates for infrastructure to ₹10.18 lakh crore for the current financial year in the budget. It may be noted that the budget estimate towards infrastructure in the current financial year was ₹11.11 lakh crore.
Ministry of road transport and highways has displayed a remarkable turnaround in the spending on the construction of highways. In the month of December alone, the ministry spent ₹85,863 crore on execution of highway projects compared with a total of ₹90,895 crore spent in seven months between May and November.
November 2025
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In November, the ministry could spend only ₹1,986 crore. With a cumulative spending of ₹2,32,690 crore till December, the ministry has utilised almost 85% of the ₹2,72,000 crore allocated to it for infrastructure in the budget 2024-2025.
The ministry of railways, too, has utilised 75% of the amount allocated to it in the budget till December. It has spent ₹1,91,498 crore till December and was allocated ₹2,52,000 crore for 2024-25. Housing and urban poverty alleviation ministry, too, has displayed a very robust show utilising 88% of the FY25 allocation of ₹28,628 crore. Department of space has also utilised 52% of the amount allocated to it for capital expenditure, spending ₹2,920 crore till the month of December.
Meanwhile, the telecom ministry has been a major drawdown. The ministry has been able to utilise only 6% of the amount allocated to it. Out of FY25 allocation of ₹84,496 crore, the ministry could spend only ₹5,249 till the month of December. This is predominantly because the department of telecommunications could not infuse equity in BSNL. Budget 2024-25 had allocated an amount of about ₹83,000 crore for equity infusion in the entity. Though it may also be pointed out that factoring in equity infusion into BSNL under capital expenditure head itself is a questionable move.
Till December, defence ministry, too has been able to utilise 51% of the allocation made to it in the last year’s budget. The ministry has spent ₹87,926 crore out of ₹1,72,000 crore allocated to it.