FM Sitharaman lauds Modi govt’s infrastructure push, citing huge savings in logistics expenses.
Finance Minister Nirmala Sitharaman commends the Modi government’s infrastructure drive, asserting that it has significantly reduced logistics expenses. She estimates potential annual savings ranging from INR 2.4 trillion to INR 4.8 trillion due to the extensive road network expansion undertaken in the last decade.
Sitharaman criticised the previous Congress-led UPA government for neglecting infrastructure development, which, she argued, compromised India’s economic potential. She highlighted the substantial increase in Gross Budgetary Support (GBS) capital expenditure since 2014, emphasising a 3.72-fold rise compared to the preceding decade.
The Finance Minister underscored the importance of capital expenditure, citing a National Institute of Public Finance and Policy (NIPFP) study indicating that every Rupee directed towards capital expenditure increases economic output by INR 4.8.
Sitharaman pointed out the significant budgetary allocations towards road transport and highways, witnessing a 500 percent increase since 2014. Additionally, she noted the expansion of the national highway network by 60 percent during this period. Similarly, Railways’ capital expenditure allocation witnessed a substantial rise, reaching INR 2.43 lakh crore in 2023-24, representing a 30-fold increase over 2004-05.
However, Sitharaman criticised the Congress-led UPA government’s approach to economic growth and infrastructure development, accusing it of neglecting vital investments. She expressed skepticism about the Congress learning from past mistakes, citing a reduction in capital expenditure share in the 2024 budget presented by the Congress Government in Karnataka.
