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The government will provide Rs 11.11 lakh crore for capital expenditure for 2024-25 and introduce viability gap funding to spur private investment in infrastructure, Finance Minister Nirmala Sitharaman said on Tuesday.
Presenting the Union Budget for FY2024-25, she said that 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 Rs 11,11,111 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 Rs 1.5 lakh crore for long-term interest-free loans has been made this year also to support the states in their resource allocation," she said.
Sitharaman said investment in infrastructure by the private sector will be promoted through viability gap funding (VGF) and enabling policies and regulations.
"A market-based financing framework will be brought out," she said.
The Budget has also announced launching the fourth phase of the PM Gram Sadak Yojana in 25 rural habitations and providing assistance to Assam for flood management and related projects.
The minister added that the significant investment that the central government has made over the years in building and improving infrastructure has had a strong multiplier effect on the economy.