Viability gap fund to push pvt capex in infra
Govt provides Rs11.11 lakh-cr capex for infra growth in next 5 yrs
image for illustrative purpose
Muted Pvt Capex:
- Capex amounts to 3.4% of GDP
- Rs1.5 lakh-cr long-term interest-free loans to States
- A market-based financing framework on the cards
- Pvt investments in infra still low
New Delhi: The government will provide Rs11.11 lakh crore towards capital expenditure for 2024-25 and will introduce viability gap funding to spur private investment in infrastructure, Finance Minister Nirmala Sitharaman said on Tuesday. Presenting the Union Budget for financial year 2024-25, she said the government will endeavour to maintain strong fiscal support for infrastructure over the next five years, in conjunction with imperatives of other priorities and fiscal consolidation. “This year, I have provided Rs11,11,111 crore for capital expenditure. This would be 3.4 per cent of our GDP,” Sitharaman said.
The minister said the Union government will encourage states to provide support of similar scale for infrastructure, subject to their development priorities. “A provision of Rs1.5 lakh crore for long-term interest-free loans has been made this year also to support the States in their resource allocation,” she said.
