More tax-saving options in Budget 2024: Why the budget should reintroduce tax-saving infrastructure bonds

economictimes.indiatimes.com:

Though infrastructure is financed jointly by central, state and local governments through grants and transfers, the operational and maintenance costs must be met by the cities. However, these cities are already struggling with limited municipal revenues. Accordingly, the basic urban infrastructure in India is poorer than those in the OECD and BRICS nations.

Rationale of Reforms: Citizen as Partner

In this context, for India to become a trillion-dollar economy, its cities need significant infrastructure upgrades. This requires substantial capital investment. Improved infrastructure will increase property valuations, leading to higher capital values during property sales.

To capture this value and ensure citizens are partners in these infrastructure developments, it is proposed that the Finance Minister make provisions in Budget 2024 to make infrastructure bonds and municipal bonds attractive.

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Proposal A: Bring Back Infrastructure Bonds in Budget 2024

A nation's infrastructure directly impacts its growth; better infrastructure leads to faster economic advancement. Taxpayers provide the majority of the funds needed to build a nation's infrastructure, which must