Infrastructure Budget 2024 Highlights: No major announcements for infra sector in FM Sitharaman’s Budget speech

Recently, a series of mishaps in the roadways sector has raised some serious questions on the integrity and safety of India’s roads. The newly-built Atal Bihari Vajpayee Sewri-Nhava Sheva Atal Setu, popularly known as the Mumbai Trans Harbour Link (MTHL), came under heavy scrutiny after cracks appeared on its tar road exit towards Ulwe in Navi Mumbai. The MTHL was constructed at approximately Rs 17,840 crore. In Bihar, over 10 bridges collapsed in a span of 20 days, after which 15 engineers were suspended.

Airport infrastructure

Sustainability

Regulatory frameworks

Fuel prices fluctuations

Innovation in technology and services

Favorable fiscal policies and adequate funding

According to analysis using OAG data, over the past decade, India has achieved the highest annual growth rate in seat capacity among the top five nations, averaging 6.9%. Following India, China has grown at 6.3%, the US at 2.4%, Indonesia at 1.1%, while Brazil has experienced an annual decline of 0.8%.

According to the Economic Survey 2023-24, India‘s ability to construct high-quality infrastructure hinges significantly on increased private sector financing and the mobilization of resources from new sources. The survey emphasizes that achieving this goal will necessitate not only policy and institutional backing from the central government but also active involvement from state and local governments.

Finance Minister Nirmala Sitharaman visits Rashtrapati Bhavan to meet President Murmu before presenting the Budget at 11am in Parliament.

FM Nirmala Sitharaman set to present Modi 3.0 govt’s first budget today in Parliament. The Union Budget, the first significant policy announcement of Modi 3.0, is anticipated to prioritize job creation and stimulate consumption, potentially benefiting sectors like consumer goods, real estate, and automobiles according to analysts.

The survey highlights an increase in the Union government’s capital expenditure on railways and National Highway Authority of India (NHAI) from 36.4% in FY21 to 42.9% in FY24 (RE). Absolute values of capital expenditure in railways and NHAI have increased 2.6 times from FY21 to FY24 (RE).

Nirmala Sitharaman, re-elected for her second consecutive term as Finance Minister, is set to present the Union Budget 2024 for the fiscal year 2024–25 in July. This achievement will mark her as the first finance minister to present seven consecutive Union Budgets, surpassing Morarji Desai’s record of six consecutive presentations.

The budget address will be broadcast live on Parliament’s official channels, Sansad TV and Doordarshan, as well as on their respective YouTube pages.

The chairman of AAI highlighted the Indian aviation market‘s potential to accommodate nearly 3 billion passengers annually by 2047, emphasizing its pivotal role in meeting the needs of a growing middle class and expanding population. “As per one estimate, by 2047, we should be carrying almost 300 crore passengers per year. Our population is huge; our middle class is growing, so the number of travellers is going to grow,” Kumar had said.

In Delhi, Finance Minister Nirmala Sitharaman has arrived at the Ministry of Finance in Delhi and is set to present the Union Budget today.

Another issue affecting these projects is the frequent delays in their completion. In January, the Bombay High Court noted that such delays in infrastructure projects cause inconvenience to the public and increase the burden on the state exchequer due to rising construction costs.

ALSO READ | Check Railway Budget 2024 Live Updates here

The Economic Survey released on July 22, highlighted that India‘s aviation sector is poised for remarkable growth. In the services sector, the survey pointed out that the aviation industry witnessed a substantial increase in credit influx, marking a year-on-year growth of 56 percent. This growth was attributed to heightened activities in aircraft leasing, recruitment, and a promising medium to long-term growth outlook.

In the upcoming budget, the government is expected to maintain its focus on infrastructure development. According to a report in Mint, there are potential plans to increase capital expenditure allocations for the Ministry of Road Transport and Highways (MoRTH) for FY25. The increase in allocations is likely to be moderate, ranging between 5% to 10% over the revised estimates of FY24, the report said.

The Union Budget is a crucial financial document detailing the government’s projected revenue and expenditure for the upcoming fiscal year.

Private aircraft operators are eagerly awaiting clarification regarding the 2.5% import duty imposed on aircraft imported for non-scheduled operations. The industry is optimistic that the government will eliminate this tax, which was introduced approximately 15 years ago. Companies engaged in aircraft and engine component manufacturing are hopeful about incentives aimed at strengthening the domestic supply chain. This optimism is buoyed by significant orders from Indian airlines such as Air India, IndiGo, and Akasa, whose combined orderbook now exceeds 1,600 planes.

ALSO READ | Check Union Budget 2024 Live Updates here

The Interim Budget is a brief financial blueprint released before general elections, intended to manage government expenditures until the new administration assumes office and formulates a comprehensive budget. It serves as a temporary measure until the full-year Union Budget is enacted, which encompasses all facets of government spending, revenue generation, policy reforms, and other strategic allocations for the entire fiscal year.

“This budget will decide the direction of our work for the next five years and this will lay the foundation of fulfilling our objective to make India a developed country by 2047,” Modi said on Monday ahead of the budget, which will be presented by Finance Minister Nirmala Sitharaman today.

You can watch the Union Budget 2024 speech live on Sansad TV. Additionally, you can follow all the key Budget announcements, highlights, and analysis on Financial Express.

Nirmala Sitharaman, the Finance Minister, is set to present the Budget in Parliament today at 11 am. Experts have indicated that the Budget is expected to prioritise capital expenditure, particularly in infrastructure and roadways.

The Interim Budget included several significant announcements, such as an 11.1% increase in the capital expenditure outlay for 2024-2025, the projected real GDP growth for India at 7.3%, expansion of existing airports and development of new ones, promotion of urban transformation through Metro rail and NaMo Bharat, and the implementation of three major economic railway corridor programs, among other things.

The aviation industry continues to face significant cost challenges, primarily driven by the price of aviation turbine fuel (ATF). Indian airlines have persistently urged the government to streamline the duty structure for ATF and integrate it into the goods and services tax (GST) framework. Jet fuel, also known as ATF, constitutes nearly 40% of an airline’s overall expenses, significantly higher than the global average of 20-25%. Despite a 6.5% sequential reduction in June, bringing the price to Rs 94,969.01 per kilolitre in New Delhi, it remains substantially elevated compared to pre-pandemic levels of approximately Rs 64,000 per kl in 2019-20.

As Finance Minister Nirmala Sitharaman gears up to present the Union Budget 2024-25 today, the civil aviation sector anticipates policy measures focused on improving business conditions and alleviating tax pressures. Private airport operators have submitted a memorandum to the government outlining suggestions for streamlining both direct and indirect tax structures.

Welcome to our live blog coverage of Budget 2024! Finance Minister Nirmala Sitharaman is set to present her seventh consecutive budget today, July 23. The government has been actively promoting infrastructure development and providing incentives for states to increase capital expenditure.