New Delhi: The Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, has announced a provision of Rs. 11,11,111 crore for capital expenditure in the Budget 2024-25, roughly equivalent to 3.4 percent of the country's gross domestic product (GDP). The Finance Minister aims to maintain strong fiscal support for infrastructure over the next five years.
To encourage states to provide similar scale support for infrastructure, Sitharaman has provided Rs 1.5 lakh crore for long-term interest-free loans this year. This will support the states in their resource allocation for infrastructure.
Sitharaman also proposed the launch of Phase IV of Pradhan Mantri Gram SadakYojana (PMGSY) to provide all-weather connectivity to 25,000 rural habitations eligible due to population increase. She also focused on creating infrastructure for irrigation and flood management, announcing financial support and assistance for several states affected by floods and landslides.
Sitharaman announced financial support for projects with an estimated cost of Rs 11,500 crore, such as the Kosi-Mechi intra-state link and 20 other ongoing and new schemes including barrages, river pollution abatement, and irrigation projects. She also announced the support for flood management and related projects in Assam.
The government will provide assistance to Himachal Pradesh and Uttarakhand for reconstruction and rehabilitation, and to Sikkim for the havoc wreaked by flash floods and landslides in Sikkim.
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