23 April 2016 Current Affairs: Under pressure to step up capital expenditure to boost the economy, railways have finished the financial year 2015-16 with a record high capex of Rs 94,000 crore, an increase of Rs 37,000 crore over the previous year.
Railways have set a target of Rs 1.5 lakh crore capital expenditure for the current fiscal. Happy with the performance of the railway ministry, Prime Minister Narendra Modi is believed to have assured an enhanced Gross Budgetary Support (GBS) of up to Rs 60,000 crore if it continues the trend.
The Centre had earlier announced a GBS of Rs 40,000 crore for the railways in 2016-17, same as the year before. However, in November last, the finance ministry had slashed Rs 8,000 from the Rs 40,000 crore GBS, citing low spending by the railways in the first six months of the fiscal. Railway ministry was important in the Centre's scheme of things to shore up public investment, create infrastructure and revive the economy.