Finance Minister Nirmala Sitharaman has laid out a comprehensive plan to enhance the nation’s infrastructure, in the Union Budget 2024-25. The government’s strategy focuses on a significant increase in fiscal support for infrastructure projects over the next five years, with a sharp increase in capital expenditure (CAPEX) and an emphasis on private sector involvement.
Historic CAPEX Allocation
This year’s CAPEX allocation stands at a monumental ₹11,11,11,111 crore, which represents 3.4% of the Gross Domestic Product (GDP). This unprecedented figure underscores the government’s commitment to driving growth through infrastructural development.
Promoting Private Investment in Infrastructure
To bolster private sector participation, the government plans to promote private investment in infrastructure through the Viability Gap Funding (VGF) mechanism. This initiative is designed to make projects more financially viable for private investors, encouraging greater participation and investment in large-scale infrastructure projects.
Launch of PMGSY 4.0
The government is set to launch Pradhan Mantri Gram Sadak Yojana (PMGSY) 4.0, aimed at improving rural connectivity. This phase will focus on the development of 25,000 new rural habitations, providing better access and connectivity to remote areas.
Irrigation and Flood Control
Significant investments will be made in irrigation and flood control projects. The government has earmarked ₹11,500 crore for constructing flood control structures, with specific attention to mitigating the recurring floods in the Kosi region. This financial support is aimed at reducing the devastating impact of floods and ensuring the safety and well-being of affected communities.
Special Assistance to States for Flood Management
The budget also includes special assistance for states frequently affected by floods. Assam will receive aid for flood management projects, while Himachal Pradesh, Uttarakhand, and Sikkim will also receive financial assistance for reconstruction and flood mitigation efforts. This assistance is crucial for these states to rebuild and enhance their resilience against future natural disasters.
Tourism Development Initiatives
Recognizing the potential of tourism to boost local economies, the budget includes significant support for developing key tourist sites. The Vishnupath temple in Gaya and the Mahabodhi temple in Bodhgaya will be developed in a manner similar to the Kashi Vishwanath corridor. Additionally, the preservation of hot springs in Rajgir and the development of Nalanda will be prioritized.
The government will also support the development of Odisha’s temples, scenic landscapes, natural beauty, and pristine beaches. These initiatives are expected to attract more tourists, thereby generating revenue and creating employment opportunities in these regions.
