FM Nirmala Sitharaman Increases Capital Expenditure in Interim Budget 2024
The Interim Budget 2024 announcement by Finance Minister Nirmala Sitharaman reveals a significant 11.1% increase in the capital expenditure (capex) outlay for the fiscal year 2024-25. This move is aimed at boosting economic growth and strengthening infrastructure development in India.
Budget Allocates Rs. 11.11 Trillion for Capex
The Interim Budget 2024 includes a substantial rise in capital expenditure, with Rs. 11.1 trillion allocated for infrastructure development. This marks an 11.1% increase from the previous fiscal year’s allocation of Rs. 10 trillion.
Growth Trajectory and Market Expectations
The consistent growth trajectory in capex includes a remarkable 37% increase in the current fiscal year, following growth rates of 24% in FY23 and 40% in FY22. The global financial market has been eagerly awaiting the India Budget 2024 for insights into the country’s economic plans.
Paving the Way for Vision 2047
Finance Minister Sitharaman emphasized the government’s commitment to significantly increasing capital investment outlay for the fifth consecutive year. This surge, accounting for 3.4% of GDP, is crucial in realizing the ambitious Vision 2047 goals.
Focus on Key Sectors
A large portion of the increased capex is directed towards essential sectors such as roadways, shipping, and railways, supporting the completion of projects under the Vision 2027 plan.
Driving Economic Aspirations
This strategic move reflects India’s determination to position its infrastructure sector as the primary driver in achieving its $5 trillion economy target and becoming a developed nation by 2047. The increased capex aims to fuel ongoing progress and attract private investment, creating a synergy that propels India towards its future economic aspirations.
Hot Take: FM Sitharaman Boosts Capital Expenditure in Interim Budget 2024
India’s Interim Budget 2024 reveals a significant increase in capital expenditure, with Finance Minister Nirmala Sitharaman allocating Rs. 11.1 trillion for infrastructure development. This move aims to drive economic growth, strengthen infrastructure, and attract private investment. With a focus on key sectors and a commitment to Vision 2047 goals, India is positioning itself as a major player in the global economy. The increased capex not only supports ongoing progress but also paves the way for India’s future economic aspirations.
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