Government plans to invest capex in shorter-duration projects, says Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman,
- IBEF
- February 6, 2024
Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman, is strategically directing its investment focus towards shorter-duration projects as it endeavors to maximize the utilization of the unprecedented capital expenditure allocated in the interim budget. Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman in an interview with Mint, emphasized the importance of completing capital expenditure within a 12-month timeframe despite the extended gestation periods typical of many projects ranging from 24 to 36 months or more. The government's move aims to accelerate the development of the country's infrastructure. The central capex allocation for the upcoming fiscal year, commencing on April 1, has witnessed an 11.11% increase to reach US$ 133.8 billion (Rs. 11.11 trillion), with a significant emphasis on advancing infrastructure projects. This deliberate shift in investment strategy is geared towards optimizing efficiency and ensuring timely and impactful deployment of financial resources.
Furthermore, She clarified that the comparatively slower growth rate in capex for the fiscal year reflects the already elevated levels in recent years, rising from US$ 36.1 billion (Rs. 3 trillion) to US$ 120.4 billion (Rs. 10 trillion). The Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman, highlighted the proportional nature of the 11% increase, considering the higher base, which accounts for about 3.4% of the GDP. This measured approach acknowledges the substantial progress in capital expenditure in previous years and aims to maintain a strategic and impactful trajectory for sustained economic growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
