Context
As the Budget is a combined one, the Centre can now synergize investments in rail, roads, rivers and civil aviation
Major push to the infrastructure sector
- Higher allocation for infrastructure sector: This sector will see a major rise in allocation from ₹3.4 lakh crore to ₹3.9 crore (BE). Transport (including rail,roads and shipping) accounts for a bulk of the expenditure at ₹2.4 lakh crore
- Hike in allocation to Highways: The Budget allocation for highways at ₹64,900 crore reflect a 12% hike. 2,000 km of coastal roads had been identified for construction and development, facilitating better connectivity with ports and remote villages
- The Sagarmala project allocation will see a hike from the ₹450 crore Budget estimates to ₹600 crore
- Metro projects, an important link in urban transportation has already received allocation hikes in this fiscal and is budgeted to get a further hike
Significance of higher allocation
It will have a multiplier effect and bring about inclusive growth by connecting rural areas. It will further create jobs and spur economic activity
