 "Budget 2016: With public sector push, Jaitley hopes to boost private investment")
With private sector investment failing to pick up, Union Finance Minister Arun Jaitley today stuck to giving more push to public investment through increased budgetary allocations for key infrastructure sectors, besides provisioning for higher capital expenditure by central public sector undertakings (PSUs).
The central Plan outlay for power, new and renewable energy and transport sector was collectively increased by 50 per cent to Rs 3,7958 crore for 2016-17 from the revised spending of Rs 22,4813 crore in the current year.
Railway and road sectors combined would see budgetary allocation increasing to Rs 2,18,000 crore during 2016-17. This could mean more contracts coming in the two key infrastructure sectors, thus giving a push to private sector investment.
Infrastructure and investment were among the nine big themes of the Budget. Jaitley said the push to these sectors was in order to bring in more efficiency and to improve the quality of life. "In the road sector, there were more than 70 projects that were languishing at the beginning of the year, due to legacy factors. The aggregate length of these projects was about 8,300 km involving more than Rs 1 lakh crore investment," the minister said in his speech. "With exemplary and proactive interventions, nearly 85 per cent of these projects have been put back on track," he added.
In the civil aviation sector, the government is drawing up an action plan for the revival of unserved and underserved airports. "There are about 16,015 airports and air strips with state governments which can be revived at an indicative cost of Rs 50 crore to Rs 100 crore each. We will partner with the state governments to develop some of these airports for regional connectivity. Similarly, 10 of the 25 non-functional air strips with the Airport Authority of India will also be developed," Jaitley said. Besides this, budgetary support of Rs 1,713.0 crore has been earmarked for equity infusion in Air India for the financial year 2016-17.
According to the Expenditure Budget, the Railways' annual Plan outlay 2016-17 is Rs 1,21,000 crore. Of this, Rs 45,000 crore is met out of the gross budgetary support, which includes Rs 10,780 crore of the Central Road Fund.
For the road sector, budgetary support has been stepped to Rs 55,000 crore. This includes allocation for the Special Accelerated Road Development Programme.
The Plan outlay of the shipping ministry is Rs 3,183.14 crore for the year 2016-17, including Rs 100 crore as GBS.
The government's push for rural infrastructure is also likely to boost investment. According to Arun Lakhani, chairman and managing director of Vishvaraj Infrastructure, the more than two-fold increase in grants to gram panchayats and urban local bodies, in accordance with the recommendations of the Fourteenth Finance Commission, will augment development significantly in terms of providing basic facilities like clean water, sanitation and other basic amenities, leading to smart towns.
The central Plan outlay for power, new and renewable energy and transport sector was collectively increased by 50 per cent to Rs 3,7958 crore for 2016-17 from the revised spending of Rs 22,4813 crore in the current year.
Railway and road sectors combined would see budgetary allocation increasing to Rs 2,18,000 crore during 2016-17. This could mean more contracts coming in the two key infrastructure sectors, thus giving a push to private sector investment.
Infrastructure and investment were among the nine big themes of the Budget. Jaitley said the push to these sectors was in order to bring in more efficiency and to improve the quality of life. "In the road sector, there were more than 70 projects that were languishing at the beginning of the year, due to legacy factors. The aggregate length of these projects was about 8,300 km involving more than Rs 1 lakh crore investment," the minister said in his speech. "With exemplary and proactive interventions, nearly 85 per cent of these projects have been put back on track," he added.
In the civil aviation sector, the government is drawing up an action plan for the revival of unserved and underserved airports. "There are about 16,015 airports and air strips with state governments which can be revived at an indicative cost of Rs 50 crore to Rs 100 crore each. We will partner with the state governments to develop some of these airports for regional connectivity. Similarly, 10 of the 25 non-functional air strips with the Airport Authority of India will also be developed," Jaitley said. Besides this, budgetary support of Rs 1,713.0 crore has been earmarked for equity infusion in Air India for the financial year 2016-17.
According to the Expenditure Budget, the Railways' annual Plan outlay 2016-17 is Rs 1,21,000 crore. Of this, Rs 45,000 crore is met out of the gross budgetary support, which includes Rs 10,780 crore of the Central Road Fund.
For the road sector, budgetary support has been stepped to Rs 55,000 crore. This includes allocation for the Special Accelerated Road Development Programme.
The Plan outlay of the shipping ministry is Rs 3,183.14 crore for the year 2016-17, including Rs 100 crore as GBS.
The government's push for rural infrastructure is also likely to boost investment. According to Arun Lakhani, chairman and managing director of Vishvaraj Infrastructure, the more than two-fold increase in grants to gram panchayats and urban local bodies, in accordance with the recommendations of the Fourteenth Finance Commission, will augment development significantly in terms of providing basic facilities like clean water, sanitation and other basic amenities, leading to smart towns.