01273nam a22001577a 4500999001900000008004100019100003100060245003400091260001200125300003000137520081300167773001200980906001100992942000701003952010501010  c520138d520138220704b           ||||| |||| 00| 0 eng d  aYadav, Sajjan Singh931823  aHarnessing multiplier effect   aYojana   a66(3), Mar, 2022: p.25-28  aIn the union budget 2022-23, the finance, minister Nirmala Sitharaman unveiled a trans formative approach to invigorate demand and accelerate economic growth. The approach relies on boosting capital expenditure, both by the public and the private sector. Capital expenditure is non-recurring, long-term expenditure on creation and acquisition of capital assets. Why is capital expenditure so critical? Studies say that capital expenditure has a multiplier effect of 2.45 in the short run and 4.8 in he long term. ‘Simply put, this means that Rs. 1  crpre spend on capital  is likely to add Rs. 2.45 crore to the gross domestic product (GDP) in the short term. Cumulative impact of this investment on GDP in the long term is likely to be Rs. 4.8 crore. What is behind this multiplier effect. – Reproduced   aYojana   aBUDGET  cAR  00102ddc40709394208aIIPAbIIPAd2022-07-04h66(3), Mar, 2022: p.25-28pAR126802r2022-07-04yAR