Nirmala Sitharaman Calls on Various Ministries to Spend Capital; explore APP for viable projects

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Nirmala Sitharaman Calls on Various Ministries to Spend Capital;  explore APP for viable projects


NEW DELHI: Minister of Finance Nirmala Sitharaman on Friday it called on various ministries to try to spend more than its capex targets, as well as explore public-private partnerships for viable projects.
During a meeting with senior government officials to discuss the infrastructure roadmap, he also urged the ministries and their CPSEs to guarantee the settlement of quotas for micro, small and medium-sized enterprises (MSMEs) as soon as possible.
This was the fifth review meeting of the finance minister with the ministries and departments on the infrastructure roadmap.
Capital expenditure plans (capex) of the ministries and their CPSE (Central Public Sector Companies), implementation status of budget announcements and measures to streamline investment in infrastructure were discussed, according to an official statement.
“In reviewing the capital expenditure performance of the ministries and their CPSEs, the Finance Minister emphasized that improved capital spending will play a critical role in revitalizing the economy after the pandemic and encouraged ministries to anticipate their capital expenditures, “he said.
Ministries were also asked to seek to achieve more than their investment objectives.
Union budget For 2021-22 it has provided a capital outlay of Rs 5.54 lakh crore, a 34.5% increase over the 2020-21 budget estimate.
However, efforts on the budget side to increase capital spending must be complemented by public sector companies, Sitharaman added.
According to her, infrastructure spending is not just central government budget spending on infrastructure and includes infrastructure spending by state governments and the private sector. It also includes public spending through extrabudgetary resources.
Therefore, Sitharaman said that the ministries should actively work so that projects are financed through an innovative structure and financing and provide all support to the private sector to improve infrastructure spending.
He stressed that ministries should also explore Public-private partnership Mode (PPP) for viable projects.
Furthermore, the minister called on the department of telecommunications (DoT) to accelerate major projects and bring the benefit of high-level data connectivity to all parts of the country, including aspirational districts.
The road and highway transport ministry was asked to explore the possibility of improving connectivity in mountainous regions and accelerating the implementation of vehicle scrapping facilities, while the minister urged the atomic energy department to ensure the timely achievement of the initiatives announced under the Aatma Nirbhar Bharat package. (ANBP).
According to the statement, Sitharaman also called on ministry secretaries to boost spending on major major projects to ensure achievement is on schedule.
Ministries were also asked to carry out periodic reviews of sector-specific projects with interested state governments for their effective implementation.

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