Infrastructure investments by the Union and state governments and Central Public Sector Enterprises touched 5.87% of GDP in 2023-24, greater than 5.03% within the earlier 12 months and 5.76% within the pre-pandemic 12 months of 2019-20, minister of state for finance Pankaj Chaudhary mentioned in a written reply.
In absolute phrases, the investments surged to Rs 17.35 lakh crore in 2023-24, towards Rs 13.57 lakh crore within the earlier fiscal and Rs 11.57 lakh crore in 2019-20, he mentioned.
The Central authorities, particularly, has raised its capital investments sharply lately, utilizing the high-multiplier impact of such spending to nurse the Covid-hit financial system again to well being quick. The Centre’s annual capex hike has been within the vary of 17% to 39% yearly since FY22.
For the present fiscal, the Centre alone has budgeted its capital spending outlay at a file Rs 11.11 lakh crore. This consists of Rs 1.5 lakh crore in long-term interest-free loans to states to bolster their capex.
“Through the years, the federal government has considerably elevated funding within the infrastructure sector, which is predicted to crowd in non-public funding,” Chaudhary mentioned.A number of measures have been launched to draw non-public sector participation, together with supporting the public-private partnerships with viability hole funding and reforms for progressive financing instruments like InvITs, REITs and IDFs, the minister mentioned.Equally, to make sure long-term infrastructure financing, establishments just like the Nationwide Funding and Infrastructure Fund and Nationwide Financial institution for Financing Infrastructure and Improvement have additionally been arrange, Chaudhary added.
