Central capex outlay unchanged at ₹11.11 lakh cr

Finance Minister Nirmala Sitharaman kept the allocation towards Central capital expenditure for 2024-25 unchanged from the interim budget levels of ₹11.11 lakh crore.

“Infrastructure has a strong multiplier effect in the economy. we will continue to spend on infrastructure through fiscal resource. This year, I have provided ₹11,11,111 crore for capital expenditure. This would be 3.4% of the GDP. We will encourage the states and will provide support to the states for infrastructure depending on their development priorities,” Sitharaman said announcing the infrastructure allocation in the budget 2024-25 today.

The finance minister also announced focus on the PM Gram Sadak Yojana for all weather connectivity to the rural areas.

Infra Bounty for Bihar, AP

Given the demand from BJP’s key ally in Bihar, JD (U), Budget announced infrastructure projects to the tune of ₹47,000 crore for the state. Similarly, another major ally, TDP, too got benefits for the state.

“On the Amritsar Kolkata Industrial Corridor, we will support development of an industrial node at Gaya. This corridor will catalyse industrial development of the eastern region. The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of modern economy. This model shall showcase “VikasbhiVirasatbhi” in our growth trajectory,” Sitharaman said in her speech. 

“We will also support development of road connectivity projects, namely Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, Bodhgaya, Rajgir, Vaishali and Darbhanga spurs, and additional 2-lane bridge over river Ganga at Buxar at a total cost of ₹26,000 crore. Power projects, including setting up of a new 2,400 MW power plant at Pirpainti, will be taken up at a cost of ₹21,400 crore.  New airports, medical colleges and sports infrastructure in Bihar will be constructed,” said Sitharaman.  

“Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act.  Recognising the state’s need for a capital, we will facilitate special financial support through multilateral development agencies. In the current financial year ₹15,000 crore will be arranged, with additional amounts in future years,” said Sitharaman.

Fillip to Industrial parks

The budget also announced plug and play industrial parks in 100 cities. “Our government will facilitate development of investment-ready “plug and play” industrial parks with complete infrastructure in or near 100 cities, in partnership with the states and private sector, by better using town planning schemes. Twelve industrial parks under the National Industrial Corridor Development Programme also will be sanctioned,” Sitharaman said.

“Acknowledging the economic multiplier impact of infrastructure development, the government has proposed to continue focus on capital investment in the sector. While the committed capex has remained the same as announced in the interim budget, many new initiatives such as focus on water treatment, sewage treatment and solid waste management projects in 100 cities, development of additional industrial parks, expanding PMGSY to additional 25000 habitations, etc would be a game changer in the medium to long terms,” said Kushal Kumar Singh, Partner, Deloitte India.