Infrastructure Finance Secretariat will assist all stakeholders for more private investment
Continuing with the trend of recent years, Union Budget 2023-24 proposes a steep increase by 33% to Rs.10 lakh crore in capital investment which would be 3.3% of GDP and almost three times the outlay in 2019-20.
Envisioning capital investment as the driver of growth and jobs, Minister for Finance & Corporate Affairs Nirmala Sitharaman said, “This substantial increase in recent years is central to the government’s efforts to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds.”
Presenting Budget 2023-24 on 1 Feb 2023, Sitharaman underlined that the direct capital investment by the Centre is complemented by the provision for creating capital assets through Grants-in-Aid to States.
She said that this “Effective Capital Expenditure” of the Centre would be budgeted at Rs.13.7 lakh crore i.e. 4.5% of GDP.
To spur investment in infrastructure and to incentivize States for complementary policy actions, the Minister proposed to continue the 50-year interest free loan to State Governments for one more year, with an enhanced outlay of Rs.1.3 lakh crore.
Sitharaman noted that after the subdued period of the pandemic, private investments are growing again.
To attract private investment in sectors predominantly dependent on public resources, Sitharaman said that the newly-established Infrastructure Finance Secretariat will assist all stakeholders for more private investment in infrastructure sectors like railways, roads, urban infrastructure and power. fiinews.com
