New Delhi, July 6 -- The Centre is set to widen the scope of what counts as capital expenditure from FY28 by bringing spending on rehabilitating, retrofitting and upgrading public assets into the government's capex basket, according to two government officials aware of the matter.

The changes are aimed at better reflecting the government's growing investments in productive assets and improving the quality of expenditure reporting. They come as the Centre has continued to rely on public investment as a key driver of economic growth, with annual budgetary allocations for capex rising sharply over the past five years.

The revamped expenditure rulebook will also introduce dedicated expenditure heads for digital equipment and information, an...