Post Budget Analysis | Infrastructure

<span style="font-weight: bold;">Proposals</span><br />
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<li>Capital outlay for the infrastructure sector up to Rs 5.97 lakh crore in FY2018v19 (up 20.8 per cent over FY2018), with major increase for segments like railways, telecommunication and affordable housing.</li>
<li>Railways and roads sectors continue to be the focus areas, contributing to over 45 per cent of the total infrastructure capital outlay. Capital outlay for the railways is budgeted to increase by 22.1 per cent while that of roads by 10.2 per cent. </li>
<li>Outlay for the Housing and Urban Development increased sharply by 57 per cent with the increased amount coming from higher expenditure under the PMAY (Urban).</li>
<li>Allocation for the Pradhan Mantri Krishi Sinchai Yojna (PMKSY) increased by 27.5 per cent to Rs 9,429 crore. Under this scheme, Rs 6,000 crore is to be spent on 48 irrigation projects under the Accelerated Irrigation Benefits Programme (AIBP) and command area development. </li></ul><br />
<span style="font-weight: bold;">Impact: Positive</span><br />
The total capital outlay for the infrastructure sector has been budgeted to increase by 20.8 per cent to Rs 5.97 lakh crore in FY2019. Apart from the core railways and roads, the special focus of this Budget has been on rural infrastructure through development of rural roads, houses, sanitation, irrigation and water supply, which will provide a significant boost to the rural economy. To meet the government¦s target of Housing for All by 2022, construction of additional 51 lakh houses will be made in the rural areas. Similarly, the capital outlay under the PMAY (Urban) has been increased sharply, which includes assistance for constructing 37 lakh homes in urban areas. The Budget has placed emphasis on the completion of on-going high-priority irrigation projects and increased allocation under the PMKSY-AIBP.<br />
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The Budget has also provided direction on the long-term projects being undertaken under the smart cities mission and the AMRUT programme. So far, out of 100 cities planned for upgradation under the smart cities mission, 99 cities have been selected. <br />
The programme will involve a capital outlay of Rs 2.04 lakh crore (projects worth Rs 2,350 crore are completed and that of Rs 20,852 crore are under progress). <br />
Similarly, under the AMRUT programme, state-level plans for providing water supply to 500 cities with capex of Rs 77,640 crore have been approved.<br />
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<span style="font-weight: bold;">Rakesh Bharti Mittal, Vice Chairman, Bharti Enterprises &amp; President Designate, Confederation of Indian Industry (CII)</span><br />
The Indian infrastructure story will continue as there are huge outlays. One good thing is that the Finance Minister has not announced any large infrastructure schemes. He has largely focused on existing smart cities, ports and airports. That is something good as the energy and focus will be on completing the projects on hand. In spite of the increase in public expenditure, fiscal deficit is contained at 3.5 per cent, which is a good sign.<br />
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<span style="font-weight: bold;">Vinayak Chatterjee, Chairman, Feedback Infra</span><br />
It is a realistic Budget that recognises two clear truths: it recognises agrarian distress and this is the last year of the present government before the general elections. For the first time, a Budget has focused so deeply on creating a slew of rural infrastructure projects and provided huge budgetary support for them. <br />
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It has not yielded to the temptation of announcing any new mega projects. The Finance Minister has gone to great lengths to explain to the audience how intensely the government is monitoring the execution and completion of all ongoing mega projects like smart cities, Bharatmala, Sagarmala, UDAN, etc. With the Finance Minister announcing a 21 per cent increase in all infrastructure projects this year, the focus of public expenditure in infrastructure projects is apparent. That is a huge increase!<br />
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<span style="font-weight: bold;">Shobna Kamineni, Executive Vice Chairperson, Apollo Hospitals Enterprises Ltd (AHEL) &amp; President Confederation of Indian Industry (CII)</span><br />
Indian infrastructure is likely to see 20 years of a huge boom. We need to spend $1 trillion in three years. And, the government will be raising money through annuities. For instance, our air capacity has gone up 100 per cent in the last three years and we will have 900 new aeroplanes introduced in the future. Therefore, infrastructure will continue to be the bedrock of India’s growth.<br />