According to Finance Minister Nirmala Sithraman, the Center would increase the capital expenditure (capex) spending for 2023–24 by 33% to Rs 10 trillion. She also mentioned in her address on the budget for 2023 that PM Awas Yojana’s budget will increase by 66% to Rs 79,000 crore.
Additionally, the Center has selected 100 crucial transportation infrastructure projects that must be completed.
The outlay on capex is at its greatest level ever. The capital expenditure for FY23 was Rs 7.5 trillion. 3.3% of the nation’s GDP will be spent on the new project (GDP).
In order to improve connectivity, the Center also suggested 50 additional airports. The development of urban infrastructure would also receive Rs 10,000 crore in funding.
FM Sitharaman said that the additional infrastructure spending will “crowd in” foreign investment in India. Experts had anticipated a 20–30% increase in the capes.
The recently created infrastructure finance secretariat would help all stakeholders attract more private investment, according to Sitharaman.
Additionally, a group of experts will be established to modify the infrastructure finance and categorization system to accommodate Amrit Kaal. In order to increase the usage of artificial technology, three centers of excellence for “Make AI in India” will be built.
For FY24, the capital expenditure for railroads has increased to Rs 2.40 trillion.
State and local governments would be encouraged to engage in urban planning, according to FM Sitharaman.
Additionally, FM Sitharaman stated that the KYC procedure will be considerably streamlined. PAN cards will serve as the standard identification for all government programs.
The 33 percent year-over-year growth is just slightly less than the 35 percent increase from the previous year.
In reference to the Covid-19 problem, Nirmala Sitharaman declared in parliament that “private investments are increasing again after a depressed time of the epidemic.”
“The budget highlights the necessity of accelerating the beneficial cycle of investment and job development. For the third year in a straight, capital investment is rising sharply, by 33% to Rs 10 trillion “She continued.