FM asks Aviation Ministry, DoT to ‘accelerate’ infra projects, capex

Finance Minister Nirmala Sitharaman on Monday pitched for an “accelerated phase of infrastructure development” and front-loading of capital expenditure in a review meeting with key infrastructure ministries. The meeting was held with top officials of the Ministry of Civil Aviation and the Department of Telecommunications. Sitharaman urged the ministries to ensure higher capital spending in the coming months to achieve higher growth in the economy, as per a statement issued by the Finance Ministry.

The telecom department was asked to push its CPSE Capex, fast-track asset monetisation and ensure expeditious implementation of digital expansion plans in entire Northeast region on priority, it said. The need to enhance capital expenditure for the next fiscal year was emphasised. As against a Budget Estimate (BE) of Rs 5.54 lakh crore of capex for the entire year, growth of around 35 per cent over the previous year, actual capex in April-July was Rs 1.28 lakh crore, growth of about 15 per cent.

In the current fiscal year till July, for which the latest data is available with the CGA, government capital expenditure was at Rs 1,28,428 crore or 23.2 per cent of 2021-22 BE, lower than 27.1 per cent during the year-ago period.

“During the meeting, capex status of Q1 and Q2, front-loading of capex, estimated targets of capital spending by ministries and their CPSEs in the upcoming quarters of current financial year, expenditure incurred for implementation of National Infrastructure Pipeline projects, estimation of funds to be raised by asset monetisation, projects undertaken through PPP and Convergence under National Master Plan were discussed,” the government said.

Among big infra-focussed departments, roads, railways, housing and urban affairs have done well in terms of capex outlay so far, while telecommunications and Jal Shakti, among others, have lagged.