People are looking forward to Budget 2023 as the infrastructure industry has taken a front seat, with government allocations increasing significantly in the past five years. The Railway budget increased to Rs 1.4 lakh crore in 2022, Roads & Highways surged to Rs 1.99 lakh crore and the civil aviation budget rose to over Rs 10,000 crore.
Infrastructure sector, the backbone of the Indian economy, is eyeing a big Budget boost, after Covid lockdowns, labour migration, and slow order pace hurt the sector more than expected. The infra industry has taken a front seat, with government allocations increasing significantly in the past five years, thereby helping move India towards achieving its $5 trillion economy goal. The Railway budget increased from Rs 55,000 crore in 2017 to Rs 1.4 lakh crore in 2022. The budget allocated for Roads & Highways surged from Rs 64,900 crore in 2017 to Rs 1.99 lakh crore in 2022 and the civil aviation budget rose from Rs 2,702 crore in 2017 to Rs 10,667 crore in 2022.
Railway Budget to focus on infra modernisation
India has Asia’s largest rail network and modernising railways has been a primary focus of the government. In FY2020 the railway budget expenditure surpassed the allocated amount from Rs 72,216 crore to Rs 1.12 lakh crore. With a record number of investments, the budget target was increased in FY22 to Rs 1.40 lakh crore. According to reports, the government’s modernisation plans include Tejas Hum Safar, Vande Bharat and VistaDome coaches, and the upgradation of all stations, electrification and doubling of rail lines. The Bullet train project is also expected to begin in the next financial year.
Road & Highway budget to ensure speedy economic recovery
A robust transport infrastructure is essential for the economic growth of a country. The Indian economic growth has slowed due to various reasons in the past three years and a strong road network is the one important factor that will ensure a speedy recovery. In the FY20 budget allocated to Roads & Highways was Rs 91,823 crore while the expenditure came in at Rs 99,159 crore. The upcoming budget is expected to improve road connectivity across the country and the reports suggest that the central government will aim for higher road monetisation goals through Infrastructure Investment Trusts (InvITs) and toll operate transfer (TOT).
Read more: Post Office PPF Scheme: Invest Rs 417, get Rs 1 crore at maturity
Civil Aviation industry struggling to reach the pre-pandemic level
Civil aviation was among the worst-hit sectors since the covid-19 pandemic struck in 2020. The lockdowns and social distancing norms led to a major crash in its growth. In FY20 the sector was allotted Rs 3,798 crore, and the expenditure reached Rs 4,089 crore; while in FY21 when things started to get better, the government allocation was Rs 3,225 crore and the revised estimates for the year are at Rs 72,652 crore. The sector is still struggling to reach the pre-pandemic levels. As the world is getting back to normal, the outlook is definitely positive for the sector.
