Govt spending spree ahead as polls near
NEW DELHI : The Union government, which unveiled ₹1.18 trillion worth of programmes spanning mobility to digital sectors, plans to make additional such mega announcements during the festive season until the year-end, four people with direct knowledge of the matter said. The proposed announcements may include a ₹1 trillion mission mode project to modernize the railway signalling system, a ₹3 trillion Bharatmala Phase-2 programme to boost connectivity to infrastructure projects such as multi-modal logistics parks and ongoing expressways, a ₹5,000 crore incentive package to encourage the construction of vessels and ships to develop a blue economy, and a viability gap funding (VGF) scheme for coal gasification.
A few other financial support initiatives targeting the agricultural and MSME sectors may also be announced. Ministries, particularly those overseeing infrastructure, social, and farming sectors, have been asked to expedite work on any new policies or programmes being formulated and bring them promptly for cabinet approval and potential launch this year so that they could be launched this year itself and some funding is allocated to them, according to one of the people cited above.
In addition, infrastructure ministries have been instructed to conclude capital expenditure for FY24 by December and prepare to take up new projects early next year, the person said, requesting anonymity. Spokespeople for the ministries of finance, road transport and highways did not respond to queries.
The government has allocated a record capex budget of ₹10 trillion for FY24, aiming to stimulate economic growth through increased public spending and foster private investment. While private investment has picked up in recent months, there
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