More highways and expressways, Vande Bharat trains, rapid laying out of 5G infrastructure and shoring up India’s defences – this is the top priority of the Narendra Modi-led government in the next financial year with just four ministries or departments accounting for nearly 73 percent of the massive Rs 10 lakh crore capex budget in 2023-24.
“Rs 10,00,961 crore as capital expenditure – this is the headline figure from this year’s budget. The government has taken a bold call and the move will generate both economic growth and jobs in the private sector,” a top government official told News18.
But how is this massive amount being split in the ministries? The budget documents show that the ministries of road transport and highways, railways, defence and the department of telecommunications will together account for close to Rs 7.31 lakh crore out of the Rs 10 lakh crore-plus capex budget this time.
While the ministry of road transport and highways has been allocated a capital budget of Rs 2.58 lakh crore, the railway ministry has been given Rs 2.4 lakh crore and the defence ministry has been allocated Rs 1.71 lakh crore. The department of telecommunications, which is leading the 5G rollout in the country, has been allocated Rs 61,000 crore for capital expenditure.
The focus on capital expense on infrastructure means that the ministries of road transport and highways as well as railways now have the largest budgets after the defence ministry.
The capex budget is 33 percent more than the previous fiscal’s, when it stood at Rs 7.3 lakh crore, and is a four-time jump from 2016. In railways, the focus is on launching 75 Vande Bharat trains over the course of 75 weeks of ‘Azadi ka Amrit Mahotsav’, of which eight have been launched so far.
In the road transport and highways ministry, the focus is on building more expressways and highways under the ‘Bharatmala Pariyojana’ as well as an increase in the pace of construction in 2023-24.
In the telecommunications department, the countrywide rollout of the 5G network remains a priority in 2023-24, while in the defence ministry, constant threats from China and Pakistan mean a big focus will be in building more capability in arms and ammunition as well as border infrastructure in roads, airfields and development.
PM Gatishakti at the centrestage
The PM Gatishakti – National Masterplan (NMP) set up in October 2021 – will be at the centrestage of capital projects undertaken in these ministries in a coordinated manner. All infrastructure ministries have been given an action plan by the NMP to enable achieving broader objectives of PM GatiShakti NMP for drawing a synergy between different sectors and optimisation of project scopes.
This includes fast-tracking the implementation of critical national highways and road infrastructure projects. The budget documents mention focus on 100 transport infrastructure projects identified for end-to-end connectivity for ports, coal, steel and fertiliser sectors.
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