Union Finance Minister Nirmala Sitharaman on Tuesday announced 35.5 per cent increase in outlay for capital expenditure to Rs 7.5 lakh crore in 2022-23 as against Rs 5.54 lakh crore in the current financial year.
Presenting the Union Budget 2022-23 in Parliament Sitharaman said the capital expenditure in 2022-23 would be more than 2.2 times the expenditure of 2019-20. The outlay for capital expenditure in 2022-23 is estimated to be 2.9 per cent of GDP.
"The virtuous cycle of investment requires public investment to crowd-in private investment. For the private investments to rise to their potential and to the needs of the economy, public investment must continue to take the lead and pump-prime the private investment and demand in 2022-23," she said.
With capital expenditure taken together with the provision made for creation of capital assets through Grants-in-Aid to States, the 'Effective Capital Expenditure' of the Central Government is estimated at Rs 10.68 lakh crore in 2022-23, which will be about 4.1 per cent of GDP.
Sitharaman announced that sovereign Green Bonds would be issued for mobilising resources for green infrastructure as a part of the government's overall market borrowings in 2022-23. The proceeds would be deployed in public sector projects which help in reducing the carbon intensity of the economy.
The Finance Minister highlighted the role of capital investments in ensuring speedy and sustained economic revival and consolidation by creating employment opportunities, inducing enhanced demand for manufactured inputs from large industries and MSMEs, services from professionals, and help farmers through better agri-infrastructure.
( With inputs from ANI )
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