There is a significant potential savings of Rs 2.4 trillion to Rs 4.8 trillion annually in logistics costs due to massive road network expansion by the Modi government in the last ten years, Finance Minister Nirmala Sitharaman said on Wednesday.

Taking a potshot at the Congress-led UPA government during FY05-FY14, Sitharaman said the UPA government’s deliberate neglect of infrastructure creation not only denied India much-needed roads, railways, power, etc. but also compromised India’s long-term economic potential.

“Since 2014, our govt has allocated a total of Rs 43.53 trillion in Gross Budgetary Support (GBS) capital expenditure, an increase of 3.72 times compared to 2004-14,” Sitharaman wrote on ‘X’.

Thanks to the BJP-led NDA government’s increase in capex, as a proportion of total expenditure, capex rose to over 21% in 2023-24, compared to just 12% in 2013-14. It was 23% in 2003-04.

“Imagine the opportunity cost lost due to @INCIndia not investing adequately in capital expenditure,” she said, adding that every km of road, every railway track, and every bridge built paves the way for a brighter and more prosperous future for all.

The FM cited the National Institute of Public Finance and Policy (NIPFP) study that said every Rupee directed towards capital expenditure in India increases economic output by Rs 4.8.

Since 2014, there has been a 500% increase in the road transport and highway budget allocation, she said.

National highway network has expanded by 60% from 91,287 km in 2014 to 1,46,145 km by the year 2023 compared to only a 39% expansion from 65,569 km to 91,287 km between 2004-14.

In 2023-24, allocation for Railways’ capex increased to Rs 2.43 Lakh Crore. It is 30 times increase over 2004-05, and 8 times increase over 2013-14.

“@INCIndia-led UPA (2004-14) wasted India’s economic growth potential and left it among the ‘Fragile Five’ economies without focusing on effective infrastructure development,” Sitharaman said.

It is also unwise to expect that Congress would have learnt from their mistakes, she said, adding that the 2024 Budget presented by the Congress Government in Karnataka slashed the share of capital expenditure in total spending by 28%.