Budget 2023: Key highlights for Infrastructure sector

Here are the key takeaways for the infrastructure sector from the latest budget.

The infrastructure sector was one of the 7 key priority areas in Budget 2023. Acknowledging the sector’s large multiplier impact on growth and employment, the following important announcements were made in today’s budget session-  

1. The capital investment outlay for the sector was increased for the third consecutive year by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP. This outlay is almost 3 times the outlay made in 2019-20.   
2. Support to state governments for capital investment- The FM decided to continue the 50-year interest free loan for state governments for one more year to spur investment in infrastructure and to incentivize them for complimentary policies with an enhanced outlay of Rs 1.3 lakh crore.   
3. The newly established infrastructure finance secretariat will assist all stakeholders for more private investment in infrastructure including roads, railways, urban infrastructure and power.   
4. A capital outlay of Rs 2.40 lakh crore has been provided for railways in FY24. This highest ever outlay is almost 9x the outlay made in 2013-14.   
5. 100 critical transport infrastructure projects for last and first mile connectivity for ports, coal, steel, fertilizers and food grain sectors have been identified. They will be taken up on priority with investment of Rs 75000 crore including Rs 15000 crore from private sectors.  
6. 50 additional airports, heliports, water aerodromes and advanced landing grounds will be revived for improving regional air connectivity.  
7. Sustainable cities for tomorrow- States and cities will be encouraged to undertake urban planning reforms.