After the subdued period of the Covid-19 pandemic, private investments are growing again in the country. Finance Minister Nirmala Sitharaman while presenting the Union Budget 2023 on Wednesday said that investments in infrastructure and productive capacity have a large multiplier impact on growth and employment.
“The Budget takes the lead once again to ramp up the virtuous cycle of investment and job creation,” said Sitharaman.
Capital Investment as driver of growth and jobs:
For the third year in a row, capital investment outlay increased steeply by 33 per cent to Rs 10 lakh crore. This is around 3.3 per cent of GDP. This will be almost three times the outlay in 2019-20.
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Effective Capital Expenditure:
The direct capital investment by the Centre is complemented by the provision made for creation of capital assets through Grants-in-Aid to States. The ‘Effective Capital Expenditure’ of the Centre is budgeted at 13.7 lakh crore, which will be 4.5 per cent of GDP.
Support to State Governments for Capital Investment:
A 50-year interest free loan to state governments will continue for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of 1.3 lakh crore.
A capital outlay of 2.40 lakh crore has been provided for the Railways. This highest ever outlay is about 9 times the outlay made in 2013-14.
One hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors have been identified. They will be taken up on priority with investment of 75,000 crore, including 15,000 crore from private sources.
A total of 50 additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.
All cities and towns will be enabled for 100 per cent mechanical desludging of septic tanks and sewers to transition from manhole to machine-hole mode.