FM asks ministries to front-load capex, ensure clearance of MSMEs' dues

Nirmala Sitharaman, during a virtual review meeting, emphasised that enhanced capex will play a critical role in revitalising the post-pandemic economy

Nirmala Sitharaman has asked ministries to front-load their capital expenditure as she chaired a virtual meeting with senior government officials on the infrastructure roadmap. 

While reviewing the capital expenditure performance of the ministries and their CPSEs on Friday, the Finance Minister emphasised that enhanced capex will play a critical role in revitalising the post-pandemic economy.

This was the fourth review meeting by the Finance Minister with ministries and second in the series of meetings scheduled on the infrastructure roadmap ahead after the presentation of Budget 2021-22. The meeting was attended by Finance Secretary, Secretary, Department of Economic Affairs, Secretary, Department of Public Enterprises, Secretary, as well as other senior officials.

Sitharaman also highlighted that the infrastructure expenditure is not just central government budgetary expenditure on infrastructure and includes infrastructures pending by state governments and the private sector.

Ministries were also requested to aim to achieve more than their capex targets. The Finance Minister said that the Budget 2021 provided a capital outlay of Rs 5.54 trillion, a sharp increase of 34.5 per cent over the Budget Estimate of 2020-21. 

However, the efforts from the budgetary side to increase the capital expenditure have to be complemented by the Public Sector Enterprises, she added.

It also includes government expenditure through extra-budgetary resources. Therefore, ministries are to actively work on getting projects funded through innovative structuring and financing and provide all support to private sector for enhancing infrastructure spending, the Finance Minister said, adding that the ministries also need to explore PPP mode for viable projects. The finance minister also asked the ministries and their CPSEs to ensure clearance of MSME’s dues at the earliest.

While concluding, the Finance Minister also requested the secretaries of ministries to push expenditure on large important projects to ensure that the achievement is commensurate with timelines. She also asked the ministries to take up regular reviews of sector-specific projects with the concerned State Governments for effective implementation of the same.