Amid concerns over a surge in import bill because of commodity price hardening in the wake of the Middle East conflict, Larsen & Toubro is hoping that the government continues with its capital expenditure even if it means a widening of fiscal deficit.
The engineering, procurement and construction major feels the government should borrow more if needed to continue with capital expenditure, a senior official has said.
“The import bill will go up because of oil and gas prices. The government will have to balance it. They will maybe temporarily raise the deficit, may be they will borrow more,” its Deputy Managing Director Subramanian Sarma told reporters over the weekend.
“Overall, if you look at it, our fiscal situation is pretty good… we have some headroom so that we don’t compromise on the capital for the infrastructure,” Sarma added.
He also noted India has been able to curtail the fiscal deficit after the impact of the Covid pandemic.
Spends on infrastructure are necessary to .