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CII calls for hike in capital expenditure
The Confederation of Indian Industry feels capital expenditure on infrastructure should be hiked to 7-8 per cent of GDP from the present figure of 5.5 per cent. To attain a high level of growth the chamber suggested mobilising resources for the sector as progressive infrastructure was vital. The insurance sector and pension corpus had been suggested as possible sources of funds. An estimate Rs11,000 crore could be raised from this sector, the chamber said. Other measures suggested were granting the housing sector the infrastructure status and the cost of financing to be reduced by 10 per cent, a 10 per cent cut in overheads to curtail revenue expenditure and the phasing out of non-merit subsidies.