Budget 2024: Infra gets highest ever Rs 11.11 Tn allocation
ECONOMY & POLICY

Budget 2024: Infra gets highest ever Rs 11.11 Tn allocation

Finance Minister Nirmala Sitharaman, in her budget speech on Tuesday, highlighted the government's commitment to the infrastructure sector, underscoring the allocation of Rs 11.11 trillion for capital expenditure, which represents 3.4% of the GDP. She emphasized the government's intention to sustain robust fiscal support for infrastructure over the next five years while balancing other national priorities and fiscal consolidation efforts.

Sitharaman reiterated the government's strategic focus, as outlined in the interim budget, on nine key priorities including agriculture productivity, employment generation, human resource development, manufacturing, urban development, energy security, infrastructure development, innovation, research & development, and comprehensive reforms.

The Finance Minister announced plans to facilitate the development of "plug and play" industrial parks with complete infrastructure in or near 100 cities, through partnerships with states and the private sector, leveraging town planning schemes. Additionally, twelve industrial parks under the National Industrial Corridor Development Programme will receive approval.

The government's investments in infrastructure have had a significant positive impact on the economy, with strong multiplier effects. Sitharaman emphasized the encouragement of state governments to similarly prioritize infrastructure development, supported by a provision of Rs 1.5 trillion for long-term interest-free loans.

To promote private sector investment in infrastructure, the government plans to utilize viability gap funding, implement enabling policies, and establish a market-based financing framework. Specific initiatives include funding support for key nodes of the Amritsar-Kolkata Industrial Corridor and Vizag-Chennai Industrial Corridor, development of new industrial parks, and facilitating worker housing in peri-urban areas through public-private partnerships.

Mohammad Athar (Saif), Partner and Leader Capital Projects and Infrastructure Development at PwC India, commented on the budget's emphasis on promoting investment in infrastructure and inclusive industrial development across new regions of the country through initiatives by the National Industrial Corridor Development Programme (NICDC).

Finance Minister Nirmala Sitharaman, in her budget speech on Tuesday, highlighted the government's commitment to the infrastructure sector, underscoring the allocation of Rs 11.11 trillion for capital expenditure, which represents 3.4% of the GDP. She emphasized the government's intention to sustain robust fiscal support for infrastructure over the next five years while balancing other national priorities and fiscal consolidation efforts. Sitharaman reiterated the government's strategic focus, as outlined in the interim budget, on nine key priorities including agriculture productivity, employment generation, human resource development, manufacturing, urban development, energy security, infrastructure development, innovation, research & development, and comprehensive reforms. The Finance Minister announced plans to facilitate the development of plug and play industrial parks with complete infrastructure in or near 100 cities, through partnerships with states and the private sector, leveraging town planning schemes. Additionally, twelve industrial parks under the National Industrial Corridor Development Programme will receive approval. The government's investments in infrastructure have had a significant positive impact on the economy, with strong multiplier effects. Sitharaman emphasized the encouragement of state governments to similarly prioritize infrastructure development, supported by a provision of Rs 1.5 trillion for long-term interest-free loans. To promote private sector investment in infrastructure, the government plans to utilize viability gap funding, implement enabling policies, and establish a market-based financing framework. Specific initiatives include funding support for key nodes of the Amritsar-Kolkata Industrial Corridor and Vizag-Chennai Industrial Corridor, development of new industrial parks, and facilitating worker housing in peri-urban areas through public-private partnerships. Mohammad Athar (Saif), Partner and Leader Capital Projects and Infrastructure Development at PwC India, commented on the budget's emphasis on promoting investment in infrastructure and inclusive industrial development across new regions of the country through initiatives by the National Industrial Corridor Development Programme (NICDC).

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