The government's capital expenditure plan — a crucial component of the expenditure drive in the transport sector — has witnessed a rapid allocation of funds by the Indian Railways and the roads ministry.
According to the Times of India, data indicates that during April and May, these two ministries — which have secured nearly 50 per cent of the total capital investment planned by the central government for the fiscal year, have utilised 23 per cent of their allocated funds.
Collectively, their expenditures amount to over Rs 114,000 crore, against an allocation of under Rs 5 lakh crore for 2023-24.
The Ministry of Road Transport and Highways has utilised Rs 59,000 crore out of the allocated budget of nearly Rs 2.6 lakh crore.
Likewise, the Indian Railways has spent more than Rs 55,000 crore in capital expenditure during the initial two months of this fiscal year, against the full year target of Rs 2.4 lakh crore, as per the report.
This includes the allocation of funds for the procurement of rolling stock as well as for state-run companies responsible for implementing dedicated freight corridors (DFC) and high-speed railway corridors.
The road ministry is witnessing such rapid progress that it anticipates to reach over 90 per cent of the allocated capital outlay for the financial year by the end of December.
Last year's expenditure prompted the Finance Ministry to allocate additional funds for asset creation.
Additionally, in recent years, the railways, previously characterised by slower progress, has successfully streamlined its expenditure practices.
The government's capex push aims to boost demand, create jobs, and strengthen the economy by focusing on construction and infrastructure.
So far, this approach has proven effective in providing crucial support to the economy, particularly during a period of subdued private investment.
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