Indian Budget 2023-24: Major Impetus to Connectivity and Road Infrastructure
Finance Minister Nirmala Sitharaman announced hiking the capital expenditure by 33 percent to Rs 10 lakh crore for infrastructure development for 2023-24 which will be at 3.3 percent of the GDP.
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The Union Budget for 2023-2024 was presented on Feb 1, 2023. The focus of this budget will undoubtedly lead India towards Amrit Kaal. To achieve these goals for the country, the budget lists 7 priorities -Inclusive development, Reaching the last mile, Infrastructure and investment, Unleashing the potential, Green growth, Youth power, and the Financial sector.
The Union Budget increased the allocation for the Road Transport and Highways Ministry (MoRTH) by 36% to over Rs 2.7 lakh crore for 2023–24, giving the ministry a boost. The budgetary allocation of Rs. 1.99 lakh crore made in the budget for 2022–2023 has increased by over ten percent.
Here are the infrastructure budget highlights from the Union Budget-
Finance Minister Nirmala Sitharaman announced hiking the capital expenditure by 33 percent to Rs 10 lakh crore for infrastructure development for 2023-24 which will be at 3.3 percent of the GDP.
For such a huge amount to invest into infrastructure development there are some challenges, challenges of land acquisition, encroachments, forest clearance, the environment clearance, so the government will have to accelerate on these fronts also, Says, Mr. Jagdish Kadam, CMD, Rajpath Infracon.
In order to improve connectivity for the ports, coal, steel, fertilizer, and food grains sectors, the government has already selected one hundred important transport infrastructure projects.
A newly established Infrastructure Finance Secretariat will assist all stakeholders with more private investment in infrastructure, including railways, roads, urban infrastructure, and power, which are predominantly dependent on public resources. She added that an expert committee will also be set up to make infrastructure classification and financing framework suitable for Amrit Kaal.
For the Railways, a capital outlay of 2.40 lakh crore has been allocated. This expenditure is nine times higher than the amount made in 2013–2014. The funding will mostly be used for track construction, the purchase of new coaches, electrification, and the improvement of station facilities. The budget also announced the completion of 9000 KM of highways during the year and this is part of the massive 35,000 KM plan across India at an estimated cost of Rs.535,000 crore. This is also part of the Bharat Mala project. In order to improve connectivity for the ports, coal, steel, fertilizer, and food grains sectors, the government has already selected one hundred important transport infrastructure projects. In her speech, Sitharaman stated that They will be taken up on priority with an investment of Rs 75,000 crore, including Rs 15,000 crore from private sources,”
The Finance Minister announced that an Urban Infrastructure Development Fund (UIDF) will be established through the use of priority sector lending shortfall, which will be managed by the National Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities. She said that States will be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF.