Budget 2024-25: FM allocates more than ₹11 lakh crore towards capital expenditure, 3.4% of GDP

Finance Minster Nirmala Sithraman referring to infrastructure as a policy priority of the central government held that significant investments made by the Central Govt in previous years have had a multiplier effect.

Updated - July 23, 2024 03:45 pm IST

Published - July 23, 2024 02:31 pm IST

Union Finance Minister Nirmala Sitharaman presents the Union Budget 2024-25 in Lok Sabha, in New Delhi on July 23, 2024.

Union Finance Minister Nirmala Sitharaman presents the Union Budget 2024-25 in Lok Sabha, in New Delhi on July 23, 2024. | Photo Credit: PTI

In her seventh budget presentation, Finance Minister Nirmala Sitharaman announced allocating Rs 11 lakh, 11 thousand and 111 crore towards capital expenditure. This would account for 3.4% of the GDP. Enumerating it as among the policy prerogatives towards investment in infrastructure by central government, she told the house that the significant investments made in previous years have triggered a multiplier effect.  

Also Read: Union Budget 2024 LIVE Updates

Ms Sitharaman elaborated that the endeavour is to provide strong fiscal support towards infrastructure in the next years in conjunction with other priorities and fiscal consolidation. She further urged, “We will encourage states to provide support of similar scale for infrastructure development based on their priorities.”  

The finance minister stated that private investment in infrastructure will be promoted through Viability Gap Funding and a market-based financing framework would be brought out. Chief Economic Advisor V. Anantha Nageswaran writing in the Economic Survey tabled on Monday had held that for India to build quality infrastructure, a higher level of private sector financing and resource mobilisation would be crucial. “Facilitating this would not only require policy and institutional support from the Central Government, but State and Local Governments would have to play an equally important role,” the Economic Survey author stated.  

Finance Minister Nirmala Sitharaman is presenting seventh consecutive budget on Tuesday. Prior to Monday, she has presented six full and one interim budget.  

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.