CEO NITI Aayog Param Iyer on Budget 2023-24: An infrastructure push for the people

Source– The post is based on the article “CEO NITI Aayog Param Iyer on Budget 2023-24: An infrastructure push for the people” published in The Indian Express on 7th February 2023.

Syllabus: GS2-Budgeting

Relevance: Infrastructure creation

News- The article explains how Budget 2023 gives a powerful thrust to infrastructure development .

What are the announcements in Budget related to infrastructure?

In Budget 2023-24, 3.3 per cent of the GDP, an increase of three times from 2019, was allocated for infrastructure.

The Ministry of Railways received its highest-ever allocation of Rs 2.4 lakh crore, approximately nine times the allocation in 2013-14.

The Ministry of Road Transport and Highways saw a 36 per cent increase in its budget to about Rs 2.7 lakh crore.

The direct capital investment by the Centre has been further supplemented by a one-year extension of the 50-year interest-free loan to state governments.

It is apt that the Finance Minister has observed that every rupee spent on infrastructure and capital expenditure gives 2.95 as a multiplier.

How is the Budget pushing the digital transformation?

The first phase of digital transformation started in 2015 and was led by the JAM trinity — Jan Dhan, Aadhaar and mobile linkages, and the Digital India programme.

The second phase of digital transformation is now being led by the development, application, and large-scale expansion of cutting-edge technologies.

Another important domain that the government is focusing on currently is creating open AI resources. The Digital India Bhashini portal is a public digital platform that hosts 260 open-source API-based AI models .

Similarly, the Agriculture Accelerator Fund announced in the budget will enable the Indian agricultural ecosystem to work collaboratively and find knowledge-based and farmer-centric solutions.

How is the Budget pushing the Social infrastructure?

The total expenditure of the central government in social infrastructure has increased by 134 per cent from Rs 9.1 lakh crore in 2016 to 21.3 lakh crore in 2023.

The Aspirational Districts Programme spearheaded by NITI Aayog through data-driven governance has resulted in consistent macro improvements in key socioeconomic indicators.

The emphasis on digital land records under the SVAMITVA Scheme of the Ministry of Panchayati Raj is a structural reform in rural land management that leads to individual economic empowerment.

Targeted initiatives announced in the budget such as the mission to eliminate sickle cell anaemia will raise awareness about the near-fatal disease and will immensely benefit the affected tribal areas.

What is the way forward?

This concerted thrust on creation, maintenance and expansion of physical, digital and social infrastructure has emerged as a systemic focus of India’s unique development model.

This infrastructure triad will be the enabler of growth and leveller of opportunities.