Govt to spend more on infrastructure to boost incomes: Finance secretary
- Pandey said the move is aimed at ensuring that government presence is not required in the private sector and foreign investments.
Finance secretary Ajay Bhushan Pandey on Wednesday said that the government will invest more on infrastructure development and capital investment in 2021 in order to strengthen the nation’s economy.
Pandey said that the government has decided to spend more on capital investment and infrastructure to generate growth in the economy post-Covid-19. He pointed out that the government is planning to spend more than 34% compared to the previous year, in a bid to develop the infrastructure of the nation.
“In difficult times like this, the government should spend more on infrastructure and capital investment so that everyone along with the economic benefits. Expenditure on infrastructure and capital investment this year will be at least 34% more than the previous year,” Bhushan was quoted as saying by news agency ANI.
Pandey said the move is aimed at ensuring that government presence is not required in the private sector and foreign investments. He said, “The goal of the government is 'minimum government and maximum governance', so we must bring in private and foreign investments in the areas where the presence of government is not essential.”
Bhushan also said that the government is aiming to improve the livelihood of citizens by attracting private investment and foreign investment across various sectors. He said that these steps taken by the government will help generate employment and boost incomes.
The government announced the formation of the Development Finance Institution (DFI) which will allow the private sector to invest in the building of roads, airports, railways, freight corridors, and ports. The budget proposes to award contracts for building 8,500km of roads by March 2022 and aims to complete 11,000km of national highway corridors.
“Over 13,000 km length of roads at a cost of ₹3.3 lakh cr has already been awarded under ₹5.35 lakh cr Bharatmala project of which 3,800 km have been constructed. By March 2022 we'd be awarding another 8,500 and completing an additional 11,000 km of National Highway Corridor,” Union minister for finance Nirmala Sitharaman had said in her Union Budget 2021 speech.
Bhushan said, “The government has expressed a policy to boost our financial system, that includes banks, insurance companies, capital markets, stock markets. We want to bring in private and foreign investment in various sectors so that people get jobs and their financial status improves.”