New Delhi: Taking a signal from the call of Prime Minister Narendra Modi for “All Government Approaches”, Minister of Finance Nirmala Sitharaman is expected to signal the convergence of a capital expenditure plan, which aims to ensure the funds, when used for productive purposes, used more efficiently.
The higher capex is expected to be the main board of the fourth budget of Sitharaman which will be presented on February 1 when the government sees to spur investment in infrastructure as part of a plan to create input requests such as steel and cement and also produce work.
While capex by central government institutions is expected to be channeled better, the center also tends to provide incentives to the countries to join.
During the current financial year, countries were allowed to borrow additional RS1 Lakh Crore if their CAX for the year reached 5.8 lakh crore.
The source shown to TOI that similar dispensation can be continued.
“This will not only produce countries that encourage more to spend more to create assets and infrastructure, but will also give them flexibility in deciding where they want to put the money, which is a better way to do so than a top-down approach , “The government’s source said.
During the past 18 months, the Ministry of Finance has decided to allow the state to borrow more, as long as they meet certain benchmarks, whether they are related to expenditure reform or the electricity sector.
The government believes that incentives help state to focus on better strategies and harmonize with national goals.
In the case of the central government agency and department, the department for industrial promotion and internal trade has initiated the PM Gati Shakti scheme, which is intended for better project implementation so that resources can be collected and duplicated avoided for better delivery.
This initiative binds well with central national investment pipes, with countries also expected to come to Gati Shakti, so that whatever gap in planning or implementation can be avoided in the future.
The whole idea of this initiative is better convergence and capex initiatives are expected to add it.
Sitharaman can see the Capex Convergent plan
