Government Boosts Infrastructure with Rs 11.11 Lakh Crore Capital Expenditure

The government announced a significant capital expenditure of Rs 11.11 lakh crore for the fiscal year 2024-25 to enhance infrastructure, as presented in the Union Budget by Finance Minister Nirmala Sitharaman. The funding aims to stimulate private investment and support states with long-term interest-free loans.

Finance Minister Nirmala Sitharaman revealed that the government will allocate Rs 11.11 lakh crore for capital expenditure in 2024-25, aimed at bolstering infrastructure. The announcement was made during the Union Budget presentation on Tuesday.

The government is committed to maintaining robust fiscal support for infrastructure over the next five years while balancing other priorities and fiscal consolidation. 'This year, I have provided Rs 11,11,111 crore for capital expenditure. This would be 3.4 per cent of our GDP,' Sitharaman stated.

To further encourage private sector investment, the Union government will introduce viability gap funding and supportive policies. Additionally, Rs 1.5 lakh crore in long-term interest-free loans will be allocated to assist states. The market-based financing framework will also be launched to attract more private investment.