The budgetary allocation for the infrastructure sector should be in line with the growth in GDP, an expert said.
“From a GDP perspective the amount the Union government allocated to the infrastructure sector (in the previous years) brought us close to 3% of the GDP. Hence they should maintain that, essentially the allocation should be in line with the GDP growth,” Mohammad Athar, Partner and Leader, Capital Projects and Infrastructure, PwC said.
In terms of focus, it should be on enhancing urban infrastructure.
The urban infrastructure is behind any other curve if we look at the development of the cities we need to focus on building a robust infrastructure, Athar said.
He added that the mega cities will start becoming more regional in their approach, for instance a Delhi master plan needs to consider the need for infrastructure in the national capital region as well.
“What we need is an integrated master plan of five cities coming together, ” he said, adding that the cities will be at the core of investment for the government.
The country needs more metros and regional rapid transits linking the adjoining cities with mega cities.
“Also in bigger cities the investment heterogeneity will not just be about a sewerage network or housing infrastructure but it will be a lot about mobility. Majority of investments will be mobility focussed in urban areas,” he further added.
In the Union Budget 2024-25, an allocation of Rs 11.11 lakh crore capex was made for the infrastructure sector.
Finance Minister Nirmala Sitharaman in her budget speech had said, “We will endeavour to maintain strong fiscal support for infrastructure over the next 5 years, in conjunction with imperatives of other priorities and fiscal consolidation. This year, I have provided Rs 11.11 lakh crore for capital expenditure. This would be 3.4 percent of our GDP.”