Testing Budget Shakti

Infrastructure development has clearly been given a huge thrust in the Union Budget 2022-23 by the finance minister. The capital outlay has been raised by 35 per cent to ₹7.5 trillion and the fiscal deficit has been contained at 6.9 per cent of GDP. Among the variety of initiatives announced, some that were noteworthy included: The allocation of ₹1 trillion to assist states in catalysing investments including those for PM Gatishakti in the form of a 50-year interest-free loan is over and above the normal borrowing allowed to states. The utilisation could include PM Gram Sadak Yojana, digitisation, optic fibre network, town planning schemes etc. Data for the last five years (2016-17 to 2020- 21) revealed that more than half (52.3 per cent) of the projects were taken up in five states — Gujarat, Maharashtra, Karnataka, Andhra Pradesh, and Tamil Nadu. This will allow other states to also follow suit and therefore there will be a race towards development. After a gap of six years, urban planning a.k.a. smart cities mission has been rejuvenated with the FM’s emphasis on nurturing megacities and re-imagining tier 2 and 3 cities. I had emphasised the need for ‘capacity building’ time and again at various platforms in order to stop the haemorrhaging of the building blocks. Having recognised this gap, a committee has been formed to resuscitate this vertical. An outcome report of the Smart Cities Mission could be a good starting point. Strategically, villages in border areas have been covered under the Vibrant Villages Programme which will include roads, housing, village infrastructure, renewable energy, etc. The contracts for laying optic fibre in all villages, including remote areas, will be awarded under the Bharatnet project through PPP in 2022-23 and is targeted to be completed in 2025.Click here to read more