Finance Minister Nirmala Sitharaman has increased FY24 capital investment outlay by 33% to ₹10 lac crores, which would be 3.3% of gross domestic product (GDP).
The capital investment outlay has been increased steeply for the third year in row. "This would almost be three times the outlay made in 2019-20,"said Sitharaman in her budget speech on Wednesday.
She noted that the increase in recent years is intended to promote job creation and growth possibilities.
“This substantial increase in recent years is central to the government’s efforts to enhance growth potential and job creation, crowding private investments, and provide a cushion against global headwinds,” added Sitharaman.
The estimated effective capital spending for the center is ₹13.7 lakh crore, or 4.5 percent of GDP. 50-year loans will continue to be provided as assistance to state governments for capital expenditures.
According to the budget document, the newly established infrastructure finance secretariat will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure and power, which are predominantly dependent on public resources.
Further, the finance minister announced a capital outlay of ₹2.40 lakh crore for the Railways, and it has been the highest ever outlay is about 9 times the outlay made in 2013-14.