Budget pushes for developing transport, urban infrastructure, housing

Railways ministry gets highest-ever capital expenditure allocation, of Rs 2.4 trillion in FY24

Finance Minister Nirmala Sitharaman’s Budget on Wednesday announced initiatives for transport and housing, supporting the sectors with a record capital expenditure allocation of Rs 10 trillion.

The ministries of housing and urban affairs (MoHUA) and railways will see a capex surge in FY24, getting close to Rs 3.2 trillion together. The Centre will continue its focus on having a "virtuous cycle" in private investment and getting more of it into government projects.

“The newly-established infrastructure finance secretariat will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure, and power, which are predominantly dependent on public resources,” Sitharaman said.

The railways ministry has been given its highest-ever capital expenditure allocation, of Rs 2.4 trillion in FY24, to be used for 100 transport infrastructure projects to be undertaken on priority for better last-mile connectivity for key commodities like steel and fertilisers, with connectivity to ports.

These projects will entail a capital outlay of Rs 75,000 crore.

Coastal shipping will get priority for energy-efficient transportation of passengers and freight, Sitharaman said. The Budget allotted MoHUA Rs 79,000 crore to meet its goals envisaged under the PM Awas Yojana.

Sitharaman announced establishing a Rs-10,000 crore Urban Infrastructure Development Fund (UIDF) through priority sector lending shortfall, which will be used for transforming urban planning and making cities more sustainable — efficient use of land, adequate resources for urban infrastructure, and transit-oriented development will be the core tenets of this transformation.

States will be encouraged to leverage resources from the fifteenth finance commission grants and existing schemes to adopt appropriate user charges while accessing the UIDF, she said.