larson And Toubro (L&T) Chief Financial Officer (CFO) R. Shankar Raman expects capital expenditure to increase by 10 per cent in the upcoming budget to be presented for the financial year 2026-27. Amid concerns over a slowdown in private capital expenditure growth, Raman said he was not afraid of a shortage of resources for private investment due to the state’s high expenditure. Adequate liquidity available in the system will support such investments.
Infrastructure will have to play a big role in making India a developed country by 2047.
“If India has to become a developed economy by 2047, infrastructure will have to play a big role,” Raman told PTI recently. I think the government knows this. I hope they will allocate adequate resources for this in the budget.” Pointing to the commitment of over Rs 11 lakh crore for capital expenditure in the General Budget for FY 2025-26, Raman said the new budget to be presented by Finance Minister Nirmala Sitharaman in a few weeks will be on similar lines.
Infrastructure still has a long way to go
“Union Finance Minister Nirmala Sitharaman will probably increase capital expenditure by 10 per cent, that’s what I’m expecting, but that’s my own opinion,” he said. Raman said there has already been a surge in big infrastructure projects and infrastructure still has a long way to go.
R. Shankar Raman expressed regret on this matter
However, he lamented that sometimes projects are awarded to the lowest bidding companies, who are not best prepared technically, leading to delays in completion of the work. Raman said the government has recommended all departments to adopt a quality-based pricing mechanism, under which timely completion of the project and other aspects are also given importance.
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