Finance Minister Arun Jaitley on Thursday said that the strengthening of public sector banks (PSBs), infrastructure and housing will be top priorities for government next year. The Finance Minister said besides the ongoing tasks, completing the unfinished task of strengthening the PSBs is on the table for next year.
We want to ensure the ability of banks to support growth by improving their lending capacity. If we want to formalise the economy, we have to strengthen the bank. “Banks have a lot of money lying with them, their lending capcity is limited due to lack of capital adequacy,” Arun Jaitley said while speaking at an event organised by FICCI. India’s banks are reeling under Rs 9.65 lakh crore of bad loans. In October, the government announced a massive Rs 2.11 lakh crore bank recapitalisation plan.
Arun Jaitley further said, infrastructure and housing are going to be on agenda as well. We will focus on the momentum of infrastructure creation. Infrastructure creation, even the rural infrastructure, is core to India’s future growth story, Arun Jaitley said. Arun Jaitley said that while highways and ports have shown satisfactory results, infrastructure development in railways needs to be hurried. “Railway station, quality of trains, proposed bullet train, all need to be strengthened,” he said, adding that housing in rural areas by 2022 is going to be top agenda as well.
Recently, Economic Affairs Secretary Subhash Garg said that the government is planning to dedicate a large part of budget towards capital expenditure on infrastructure and will push for foreign investments in the sector. Subhash Garg was quoted saying by TV reports that the infrastructural development in India was largely public sector, but the government is exploring PPP and private mode investment for future and is seeking investments from overseas sovereign funds.
In India, the infrastructure requirement is going to be big in the next five years, according to a report by CRISIL. India needs to spend at least Rs 50 lakh crore in next five years through the year 2022 to develop infrastructure, the country will see close to Rs 3,000 crore investment per day.