Government Pledges Rs 11.11 Lakh Crore for Infrastructure Boost in FY2024-25

Finance Minister Nirmala Sitharaman announced the Union Budget for FY2024-25, allocating Rs 11.11 lakh crore for capital expenditure. The government aims to maintain fiscal support for infrastructure investments over the next five years, with incentives like viability gap funding to stimulate private sector involvement.

The government will allocate Rs 11.11 lakh crore for capital expenditure for the fiscal year 2024-25 and introduce viability gap funding to encourage private investment in infrastructure, as announced by Finance Minister Nirmala Sitharaman on Tuesday. Presenting the Union Budget for FY2024-25, she emphasized the government's commitment to maintaining robust fiscal support for infrastructure over the next five years, aligning with other priorities and fiscal consolidation.

'This year, I have provided Rs 11,11,111 crore for capital expenditure. This would be 3.4 per cent of our GDP,' Sitharaman stated. She urged the states to provide similar support for infrastructure, contingent on their development priorities. '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 added. Sitharaman underlined that private sector investment in infrastructure will be promoted through viability gap funding (VGF) and enabling policies and regulations. 'A market-based financing framework will be launched,' she said.

The Budget also includes the launch of the fourth phase of the PM Gram Sadak Yojana in 25 rural habitations and assistance for flood management projects in Assam. Sitharaman noted that the central government's significant investment over the years in infrastructure has had a strong multiplier effect on the economy.

(With inputs from agencies.)