Mumbai (Maharashtra) [India], November 6 (ANI): RBI Governor Shaktikanta Das said on Wednesday that capital expenditure spending of the centre and states are picking up but high subsidy outgo is a concern.

Das was speaking at the BFSI Summit organised by a business daily in Mumbai. He said subsidy outgo was very high and government expenditure in the first quarter is pulling down the GDP numbers.

Also Read | FC Goa vs Punjab FC, ISL 2024-25 Live Streaming Online on JioCinema: Watch Telecast of FCG vs PFC Match in Indian Super League 11 on TV and Online.

"Government expenditure has started picking up. Both revenue and capital expenditure of Centre and states have started picking up. Subsidy outgo remains an issue," said the Governor.In the July-September quarter, he said payment towards subsidy of the general government has gone up.

Government has budgeted Rs 2,05,250 crore for food subsidies in FY25. This is a 3% decrease from the revised estimate of Rs 2,12,332 crore for 2023-24. It has also provided for nutrient based fertiliser subsidy for the Rabi season at Rs 24,475.53 crores.

Also Read | Skoda Kylaq Launched in India in Sub-4-Metre SUV Segment; Check Price, Features, Specifications and Bookings Details.

Indian economy grew 6.7 per cent in the April-June quarter, lower than RBI's 7.1 per cent forecast. The next release of GDP estimates for the quarter July-September of 2024-25 (Q2 2024-25) will be on November 29. Das said higher subsidy outgo will have an impact on GDP numbers

"So that will have some impact, you know, which may have a negative impact on the GDP number. But down the line, I think economic activity remains quite robust," said the Governor.

The RBI has pegged India's 2024-25 GDP growth at 7.2 per cent. IMF and World have pegged it at 7.0 per cent. Many global rating agencies and multilateral organizations have also revised their growth forecasts for India upwards.

The Economic Survey tabled in Parliament earlier this year "conservatively" projected India's real GDP growth at 6.5-7 per cent for 2024-25, acknowledging that market expectations are higher. Real GDP growth is the reported economic growth adjusted for inflation.

India's GDP grew by an impressive 8.2 per cent during the financial year 2023-24, continuing to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)