MUMBAI: The ongoing economic slowdown appears to be affecting the all-important construction sector too. In the past few months, construction equipment makers have cut production while awarding of new road contracts has stalled as the government curbed capital expenditure to meet the FY19 deficit target.
The central government has spent only Rs 2.73 lakh crore out of the estimated Rs 3.15 lakh crore capital expenditure target for the year ended March, data for the first 11 months of the year show. According to the Controller General of Accounts (CGA), the government’s capital expenditure in the first 11 months of the previous fiscal year dropped 8%, affecting to some extent the potential production or order book of key companies across sectors.
