NEW DELHI, Nov 12 Reuters India is considering the relaxation of quarterly spending limits to ensure it does not fall short of its capital expenditure target for the financial year 20242025, according to a government source.

Federal government spending slowed during AprilJune due to the national elections, with total expenditure in six months through September at about 44 of the fullyear target.

Analysts say the weaker spending is one of the reasons for a recent slowdown in India39;s high frequency economic indicators.

India39;s industrial output dropped for the first time in nearly two years in August but is expected to grow 2.5 in September, according to a Reuters poll.

Capital expenditure will pick up in the coming months, and we will ensure as much as possible capex happens in JanuaryMarch, said the government source, who declined to be named as they are not authorised to speak to media.

The finance ministry did not immediately respond to a Reuters request for comment.

Capital expenditure, or spending on building physical infrastructure, was at 4.15 trillion rupees 49.18 billion during AprilSeptember, or 37 of the annual target, against 4.9 trillion rupees a year earlier.

The government targets capital expenditure at a record 11.11 trillion rupees in the fiscal year ending March 31.

BORROWING CUT UNLIKELY

The government is unlikely to alter its market borrowing for the fiscal year 20242025, as the plan was firmed up considering the higher redemption of…