Thursday, May 23, 2024

Centre used capex to build quality infrastructure: FM Nirmala Sitharaman

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Finance minister Nirmala Sitharaman Wednesday said the government significantly increased the outlay for capital expenditure (capex) over the last 10 years to build quality infrastructure in the country, which had a significant multiplier effect on economy and investment, besides improving ease of living.

She said the share of capex in overall expenditure went up to over 21% in 2023-24 as against just 12% in 2013-14 during the UPA regime, when infrastructure development remained grossly neglected.

“Since 2014, our govt has allocated a total of ₹43.53 lakh crore in Gross Budgetary Support (GBS) capital expenditure, an increase of 3.72 times compared to 2004-14,” she said in a long post on social media platform X.

Citing a study by the National Institute of Public Finance and Policy (NIPFP), she said every rupee directed towards capital expenditure in India increases economic output by 4.8.

She added that the active role of PM Narendra Modi made the infrastructure turnaround possible with him personally monitoring and reviewing projects worth 17.36 lakh crore, in contrast to the UPA government’s term. , which was replete with examples of cost overruns, stalled projects and lack of timely approvals.

“@INCIndia-led UPA Govt’s noticeable and deliberate neglect of infrastructure creation not only denied India much-needed roads, railways, power, etc., but it also compromised India’s long-term economic potential,” Sitharaman added.She added that while India achieved 100% rural electrification in 2018 , the share of renewable energy sources in total installed capacity increased to 32.5 % from 14.1% and its aviation network has doubled with the construction of 83 new airports, taking total operational airports to 157 from 74 in 2014.”Their negligence left the country lagging while our efforts propelled us forward with real, tangible progress on the ground,” Sitharaman said.

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