Investing in Tomorrow: Budget 2024 Prioritizes Infrastructure with Record Rs 11.11 Lakh Crore Capex Outlay

Capital expenditure in the interim Budget 2024 is estimated at Rs. 15 per cent, ensuring greater strength for infrastructure development to drive economic growth and employment generation. A huge amount of Rs 11,11,111 crore has been kept aside. Finance Minister Nirmala Sitharaman said on Thursday that the expenditure for 2024 is 3.4. Percentage of GDP.

“Based on the massive three-fold increase in capital expenditure in the last four years, resulting in a large multiplier effect on economic growth and job creation, expenditure for the next year has been increased by 11.1 per cent to Rs. 11,11,111 crores are being made. This will be 3.4% of GDP (gross domestic product),” she said.

It is important to note that the interim budget is valid only for the first four months of the 2024-2025 financial year. Lok Sabha elections will be held around April-May and the full budget will be presented only after the formation of the new government. The interim budget is a vote for Parliament's approval for advance grants to meet the expenditure of the central government.

The Finance Minister said that the government is aware that the middle class is expanding rapidly and urbanization is happening rapidly. “Metro rail and Namco can be a catalyst for the urban transformation India needs. The expansion of these systems in larger cities focusing on transit-oriented development will be supported,” she said.

Regarding the aviation sector, she said that the number of airports in the country has doubled to 149 in the last 10 years. “The aviation sector has been galvanized in the last 10 years… there has been a massive rollout of air connectivity in Tier-II and Tier-III cities under the UDAN (Ude Desh Ka Aam Nagrik) scheme. At least 517 new routes carry 1.3 crore passengers,” she added. Indian carriers have actively placed orders for more than 1,000 new aircraft. Expansion of existing airports and development of new airports will continue at a rapid pace, M Sitharaman said.

Among the ministries, Defense received Rs. 6.2 lakh crores have been received, followed by road transport and highways of Rs. 2.78 lakh crores have been received. Railways is in third place with an allocation of Rs 2.55 lakh crore.

Last year, when the Finance Minister presented the Union Budget 2023-24, the capital expenditure (capex) target was increased by 33 per cent to Rs. 10 lakh crore, which was 3.3 percent of GDP. Earlier, in 2022, it had increased capital expenditure by 35.4 per cent to Rs 2022-23 financial year. 7.5 lakh crores.