New Delhi: In her Union Budget 2024-25 speech delivered in Parliament today, Union Minister for Finance & Corporate Affairs, Nirmala Sitharaman, underscored the critical role of infrastructure in driving economic growth. She announced a substantial allocation of ₹11,11,111 crore for capital expenditure, equating to 3.4% of the country’s GDP. This commitment highlights the government’s dedication to enhancing infrastructure and its positive multiplier effect on the economy.
To incentivize states to match this scale of investment, Sitharaman unveiled a provision of ₹1.5 lakh crore in long-term interest-free loans for the current fiscal year. This initiative aims to bolster state-level infrastructure projects by easing resource constraints.
On the private investment front, the Finance Minister emphasized the government’s intent to promote private sector engagement through viability gap funding and supportive policies. A market-based financing framework is set to be introduced to facilitate this investment.
In a bid to enhance rural connectivity, Smt. Sitharaman proposed the launch of Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY). This initiative aims to provide all-weather access to 25,000 rural habitations that have become eligible due to population growth.
The Budget also addresses the need for improved infrastructure in irrigation and flood management. The Finance Minister announced financial support for states grappling with floods and landslides. Notably, Bihar will receive ₹11,500 crore for flood mitigation projects, including the Kosi-Mechi intra-state link and other schemes focused on barrages and river pollution control.
Assistance will also be extended to Assam to address recurring flood challenges posed by the Brahmaputra River and its tributaries. Similarly, Himachal Pradesh, Uttarakhand, and Sikkim will receive aid for reconstruction and rehabilitation following recent natural disasters such as floods, cloud bursts, and landslides.