Daily Current Affairs – 28 February 2026

English | Page 5 – Part II | Economy Concepts Explained

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💰 1. What is Capital Expenditure?

Capital Expenditure (Capex) refers to government spending on the creation of physical assets such as roads, railways, ports, digital infrastructure and power plants. Unlike revenue expenditure, it generates long-term economic benefits.

Why is Capex important?

• Creates productive assets
• Generates employment
• Encourages private sector investment
• Strengthens economic multiplier effect

UPSC Angle: Link Capex with growth revival and fiscal sustainability.

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 2. Financial Inclusion – A Structural Reform

Financial Inclusion means providing affordable financial services (banking, insurance, credit) to all sections of society, especially the poor and vulnerable.

Key Mechanisms:

• Jan Dhan Accounts
• Direct Benefit Transfer (DBT)
• Digital Payment Systems (UPI)

Financial inclusion strengthens economic equality and reduces leakages in welfare delivery.

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📊 3. Inflation – Concept and Control

Inflation refers to a sustained increase in the general price level of goods and services.

Types:

• Demand-pull inflation
• Cost-push inflation

Control Measures:

• Monetary tightening (Repo rate increase)
• Supply-side reforms
• Fiscal discipline

Prelims Tip: Know CPI and WPI differences.

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 4. Digital Public Infrastructure (DPI)

Digital Public Infrastructure includes foundational digital systems such as digital identity, digital payments and data exchange platforms.

Impact:

• Transparency in governance
• Reduction in corruption
• Efficient service delivery

Mains Link: DPI as a model for developing nations.

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 Mains Practice Questions

1. How does capital expenditure contribute to sustainable economic growth? (250 words)

2. Evaluate the role of digital public infrastructure in strengthening financial inclusion. (250 words)

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📘 Strong Concepts Today = Strong Analytical Answers Tomorrow
© 2026 Shaktimatha Learning – Economy Deep Series