To maintain momentum in economic activity during the second wave of the Covid-19 pandemic, Finance Minister Nirmala Sitharaman on Friday asked key ministries to anticipate their capital expenditures and try to exceed their CAPEX targets for fiscal year 22.
You also asked ministries to liquidate their shares in the underlying MSMEs and PSUs as soon as possible. Ministries were also told to explore the public-private partnership (PPP) model for viable projects.
“This was the finance minister's fifth review meeting with ministries/departments on the infrastructure roadmap. During the meeting, the capital expenditure plans of the ministries and their CPSEs, the state of implementation of the budget announcements, and the measures to accelerate investments in infrastructure were discussed, "the finance ministry said in a statement. In addition to the secretaries of the key departments, the meeting was attended by the CMDs / CEOs of the CPSEs under the Ministry of Road Transport and Motorways, Telecommunications, and Atomic Energy.
For Financial Year 2022, the union budget allocated Rs 5.54 lakh crore for capex, which is 26.5% higher than the provisional headcount of Rs 4.25 lakh crore in Financial Year 2021. In April, the finance ministry issued a directive to facilitate the allocation of additional funds from the discretionary corpus of the department of economic affairs of Rs 44,000 crore to those who show good progress in the capex.
"While reviewing the capital expenditure performance of ministries and their CPSEs, the finance minister stressed that enhanced CAPEX will play a key role in revitalizing the post-pandemic economy and encouraged ministries to anticipate their spending. the capital account, "the finance ministry said. Efforts by the budget to increase capital spending need to be complemented by the CPSEs, the minister said. Sitharaman also added that ministries must also explore the public-private partnership (PPP) model for viable projects. He also asked the ministries and their CPSEs to guarantee the liquidation of the shares of the SMEs as soon as possible.
The minister asked the telecommunications department to accelerate major projects by bringing the benefit of high-level data connectivity to all parts of the country, including aspiring districts. The road ministry was asked to explore the possibility of improving connectivity in hilly regions and speeding up the implementation of the vehicle demolition facility. The Department of Atomic Energy was asked to ensure the timely implementation of the initiatives announced under the Atma Nirbhar Bharat Package (ANBP).