Key Takeaways
- The Union Budget 2024-25 allocates Rs 11.11 lakh crore for capital expenditure, maintaining higher public spending on infrastructure development.
- The Centre will encourage states to provide support for infrastructure development, subject to their priorities.
- Investment in infrastructure by the private sector will be promoted through viability gap funding and enabling policies and regulations.
New Delhi: Maintaining higher public spending on infrastructure development, Finance Minister Nirmala Sitharaman on Tuesday announced the provisioning of Rs 11.11 lakh crore for capital expenditure for ongoing fiscal 2024-25.
Presenting Union Budget in Lok Sabha, Sitharaman said that the proposed allocation accounts for 3.4% of the country’s GDP.
“This year, I have provided Rs 11,11,111 crore for capital expenditure. This would be 3.4 per cent of our GDP,” she said.
The Centre will encourage states to provide support for infrastructure, subject to their development priorities, much like the Centre’s own infrastructure development plans.
“A provision of Rs 1.5 lakh crore for long-term interest free loans has been made this year also to support the states in their resource allocation,” she said.
Investment in infrastructure by the private sector will be promoted through viability gap funding and enabling policies and regulations, aiming to boost infrastructure development.
Commenting on Budget announcements, ICRA chief economist Aditi Nayar said, “The Union Budget kept the capital expenditure unchanged and pared the fiscal deficit to 4.9% of GDP in line with ICRA’s estimates, although the cut in borrowings is smaller than what we had expected.”
