Infrastructure Budget 2024: Capital Expenditure outlay increase to Rs 11.11 lakh crore
The estimated total expenditure for the budget estimates of 2024-25 stands at Rs 47.65 lakh crore, with the Infrastructure budget amounting to Rs 11.11 lakh crore.
On February 1, Finance Minister Nirmala Sitharaman presented the Interim Budget for 2024, a precursor to the upcoming Lok Sabha elections, which is commonly known as an Interim or vote-on-account budget.
The estimated total expenditure for the budget estimates of 2024-25 stands at Rs 47.65 lakh crore, with the Infrastructure budget amounting to Rs 11.11 lakh crore. This marks an 11 per cent increase compared to the previous year's Rs 10 lakh crore, constituting 3.4 per cent of the GDP. Over the past four years, the capital expenditure outlay has tripled, resulting in huge multiplier impact on economic growth and employment creation. The preceding year witnessed a 33 per cent rise in capital outlay compared to the preceding fiscal year. Budget 2024-25 reflects continuing strong commitment of the Union Government to boost economic growth by investing in infrastructure development leading to an increase in capital expenditure by 16.9 per cent over revised estimates 2023-24. The Effective Capital Expenditure for budget estimates 2024-25 is Rs 14.96 lakh crore, reflecting a 17.7 per cent increase over the revised estimates of 2023-24.
The Finance Minister unveiled plans for three major economic railway corridor programs aimed at alleviating congestion and reducing logistics costs in India. These include corridors dedicated to energy, minerals, and cement, another to enhance port connectivity, and a third to alleviate congestion in high-traffic density corridors.
Additionally, the FM announced long-awaited viability gap funding for offshore wind projects, without specifying the allocation. Furthermore, 40,000 regular trains are slated for an upgrade to Vande Bharat standards, and NAMO trains and metro rail services will be extended to more cities.
The number of airports has double, reaching 149, with a continued focus on the expansion of existing airports and the development of new ones under the UDAN scheme.
At 2:30 pm, S&P BSE India Infrastructure Index was down 1.77 points or 0.32 per cent to 557.16. Top Gainers in the index were - Gujarat Pipavav Port Ltd (4.80 per cent), NBCC (India) Ltd (3.55 per cent) and Power Grid Corporation Of India Ltd (2.91 per cent).
Disclaimer: The article is for informational purposes only and not investment advice.