Union Budget 2024 Infrastructure Highlights: Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in the Parliament on Tuesday (July 23). This budget outlined a roadmap for Viksit Bharat (developed India) by 2047 and providing insights into the past decade’s performance. This was Prime Minister Narendra Modi’s first budget of his third term. Sitharaman also set a record, surpassing former Prime Minister Morarji Desai, having presented seven consecutive budgets as finance minister.
In a surprising move, Finance Minister Nirmala Sitharaman did not introduce any new plans or initiatives for the Indian Railways during her Budget 2024 speech. The capex provided for the infra sector in the Interim Budget will remain unchanged.
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Infrastructure Budget 2024 Highlights: Check key updates from FM Nirmala Sitharaman's Union Budget 2024 speech here!
In a surprising move, Finance Minister Nirmala Sitharaman did not introduce any new plans or initiatives for the Indian Railways during her Budget 2024 speech. The capex provided to the infra sector in the Interim Budget will remain unchanged.
Finance Minister announced in the Budget that the government will promote the development of Nalanda in Bihar as a tourist center. Additionally, the government will also provide assistance to Odisha for development of tourism.
The Finance Minister proposes to facilitate the development of corridors at Vishnupad Temple and Mahabodhi Temple similar to the Kashi Vishwanath Temple.
The government will extend support through the Accelerated Irrigation Programme and other funding sources for projects totaling an estimated cost of Rs 11,500 crore, announced the Finance Minister.
Government is also looking to promote private investment in infrastructure by formulating proper policies and regulations, announced FM.
The Finance Minister recognized Bihar's recurring flood challenges and mentioned that plans for flood control structures in Nepal have not moved forward. The government is earmarking financial aid amounting to Rs 11,500 crore for Bihar. Assam, grappling with annual floods, will receive support for flood management projects. Himachal Pradesh, which suffered substantial flood-related losses, will also receive assistance for reconstruction through international sources. Furthermore, Uttarakhand, affected by severe landslides and cloudbursts, will be supported with necessary aid.
The government will initiate Phase IV of the PM Gram Sadak Yojana in 25 rural settlements that have become eligible due to population growth, announced the Finance Minister.
Finance Minister Nirmala Sitharaman said that infrastructure development is focus seven in the Union Budget 2024. The Finance Minister emphasised the government's commitment to sustaining robust fiscal support for infrastructure. This year, Rs 11.11 lakh crore has been allocated for capital expenditure, equivalent to 3.4% of India's GDP.
12 industrial parks will be sanctioned, announces FM Sitharaman.
Finance Minister Nirmala Sitharaman announced that the government plans to establish airports, medical colleges, and sports infrastructure in Bihar. Additionally, the government has earmarked Rs 26,000 crore for various road projects in the state.
In the Lok Sabha, the Finance Minister disclosed that the Budget allocates Rs 2.66 lakh crore for rural development.
"India Post Payments Bank plans to establish 100 branches in the North East," announced the Finance Minister.
The Finance Minister affirmed the government's dedication to funding and completing the Pollavaram irrigation project, crucial for Andhra Pradesh and its farmers. This year, additional allocations will bolster capital investment aimed at fostering economic growth.
FM Sitharaman said, "Andhra Pradesh Reorganisation Act- Our govt has made efforts to fulfil the commitments in Andhra Pradesh Reorganisation Act. Recognising the state's need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, Rs 15,000 crore will be arranged with additional amounts in future years."
"In collaboration with states, the government will promote digital public infrastructure for agriculture," announced the Finance Minister in the Lok Sabha.
In the Lok Sabha, the Finance Minister Nirmala Sitharaman announced a proposal of Rs 26,000 crore for various road projects in Bihar.
"On the Amritsar-Kolkata industrial corridor we will support the development of an industrial nod at Gaya in Bihar. It will catalyse the development of the easter region. We will also support the development of road connectivity projects- Patna -Purnea expressway, Buxar- Bhagalpur highway, Bodhgaya- Rajgir-Vaishali- Darbhanga and an additional two-lane bridge over river Ganga in Buxar for Rs 26,000 crores," said FM Nirmala Sitharaman.
Nirmala Sitharaman said that people have shown confidence in PM Modi's government by reelecting him for a historic third term. She highlighted that while the global economy is performing better than anticipated, it faces policy uncertainties with significant downside risks to growth and potential upside risks to inflation. The Finance Minister emphasized that India's economic growth continues to stand out as an exception and is expected to maintain its strength in the coming years.
Finance Minister Nirmala Sitharaman begins presentation of her 7th Union Budget in Lok Sabha.
Union Finance Minister Nirmala Sitharaman presents the first Budget of the third consecutive Modi government
— ANI (@ANI) July 23, 2024
FM says, "The people of India have reposed their faith in the govt led by PM Modi and re-elected it for the historic third term..." pic.twitter.com/kgCcvEMECx
PM Modi in Parliament ahead of Finance Minister Nirmala Sitharaman's Union Budget presentation.
#watch | PM Modi in Parliament, ahead of the presentation of Union budget by Finance Minister Nirmala Sitharaman
— ANI (@ANI) July 23, 2024
(Video source: DD News) pic.twitter.com/T0RD4hBO2z
An earlier report by the Financial Express had said that the National Highways Authority of India (NHAI) is targeting construction of 5,000 kilometre of highways in FY25, marking 22% drop from last year, as per a senior official. Last year, the highway development arm of the Ministry of Road Transport and Highways (MoRTH) constructed 6,444 km of highways, a 20% increase from the 5,544 km constructed in 2022-23.
The emerging drone industry is also seeking more policy and fiscal measures to establish India as a drone hub by 2030. Drone pilot training company Drone Destination is hopeful of a largescale increase in usage of drones, including across insurance, mining, asset and infrastructure inspection, and monitoring. Currently, agricultural spray drones are taxed at 5%, while agricultural survey drones and all other drones attract a GST of 18%.
Budget documents have been delivered to Parliament; Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget today in the Lok Sabha.
#watch | Budget copies arrive in Parliament, Finance Minister Nirmala Sitharaman to present the Union Budget today in Lok Sabha. pic.twitter.com/Xr2Igln9BW
— ANI (@ANI) July 23, 2024
The survey highlighted the necessity to enhance data capture and reporting mechanisms for infrastructure investments across various instruments and sectors, along with detailing their composition in different projects at a detailed level. According to the pre-Budget document, current databases are inadequate for assessing infrastructure demand and monitoring the utilisation of facilities within sub-sectors.
Finance Minister Nirmala Sitharaman is expected to present the Union Budget 2024 on July 24 at 11 am in the Lok Sabha. This comes after the Interim Budget was presented by the FM on February 1, 2024.
The budget allocation for the UDAN (Ude Desh Ka Aam Nagrik) regional connectivity scheme has been cut by 60% from its previous record-high grant. This funding initiative aims to rejuvenate unused and underused airports in tier-2 and tier-3 cities. The government has allocated Rs 502 crore for the scheme, marking a substantial decrease from the previous Budget Estimate (BE) of Rs 1,244 crore, which was the highest allocation since its launch in 2017.
Accompanied by her team, Finance Minister Nirmala Sitharaman arrives at Parliament with the Budget documents, prepared to present the Union Budget in the Lok Sabha.
#watch | Finance Minister Nirmala Sitharaman carrying the Budget tablet arrives at Parliament along with her team, to present the Union Budget in Lok Sabha. pic.twitter.com/vvRetDyiGg
— ANI (@ANI) July 23, 2024
The economic survey highlighted that international examples demonstrate how initiatives at the sub-national level can aid in mobilizing resources for infrastructure development. It emphasized the importance of viable projects emerging and being executed under the public-private partnership mode, considering the fiscal constraints and consolidation plans of both Union and state governments.