BENGALURU: Union Finance Minister Nirmala Sitharaman, in the Budget presented on Tuesday, has announced enhancing outlay for the scheme on financial assistance to states, for capital investment in infrastructure, from Rs 10,000 crore in FY 2021-22, to Rs 1 lakh crore.
This is being seen as a huge push for infrastructure across the country, especially with regard to ‘Gati Shakti’ projects involving the development of highways, railway lines and ports, among others. Karnataka, which had received Rs 380 crore during FY 2021-22 for various infrastructure projects, is expected to get Rs 3,000 crore during FY 2022-23.
“For 2022-23, the allocation is Rs 1 lakh crore to assist the states in catalysing overall investments in the economy. These 50-year interest-free loans are over and above the normal borrowings allowed to the states,” Sitharaman clarified.
Since the state is liable for loan, it will be at liberty to spend it on any capital works of infrastructure as per its priority. But the BJP government in Karnataka, led by Chief Minister Basavaraj Bommai, is likely to invest on projects concerned with development of highways, railways, metrorail, ports, airports, and irrigation.
“Since the capital outlay for the states has been enhanced, we expect an additional Rs 3,000 crore on our capital outlay too. We will have our share on roadways and railways projects,” the CM said, hinting that his budget outlay being enlarged with impetus on ‘Gati Shakti’ projects.
According to official sources, the state had already spent Rs 380 crore in FY 2021-22 and will prepare a fresh proposal to get the enhanced loan for FY 2022-23, proportional to the previous year, in April 2022.
The Centre will verify the proposal and clear it to disburse the loan against borrowings in Karnataka’s account, which means that when Bommai presents his maiden budget in the first week of March, its outlay will also be increased and the borrowing of the loan is also likely to be reflected in it.