#Budget2017: Arun Jaitley Banks On Infrastructure To Drive Growth

From the outset, one could figure Finance Minister Arun Jaitley's budget speech would focus on mitigating the damage caused to the Indian economy by the Central government's demonestisation move with sweet words. Starting his speech with "spring is a season of optimism", the FM took to poetry a couple of times to send across the message that the short-term pains caused by demonetisation would pave way for long-term gains. Terming the "bold" move as a "tectonic policy initiative" and shrugging its impact on the economy as "transient", the FM listed the many benefits the economy will reap in future. Amid all this, not many would claim that they had much to gain from the Budget. India's infrastructure sector happens to be an exception though.

"My overall approach, while preparing this Budget, has been to spend more in rural areas, infrastructure and poverty alleviation and yet maintain the best standards of fiscal prudence. I have also kept in mind the need to continue with economic reforms, promote higher investments and accelerate growth," Jaitley said in his Speech.

While a total of Rs 3,96,135 crore has been allocated for infrastructure development in 2017-18, Jaitley announced a total expenditure of railways at Rs 1,31,000 crore. It is worth mentioning here that the Budget 2017-18 has merged the Rail Budget with the General Budget and has replaced the Plan and non-Plan expenditure classification with capital and revenue model.

Here are some announcements that would improve infrastructure and boost investments in the sector:

• About 25 railway stations are expected to be awarded during 2017-18 for redevelopment. On the other hand, 500 stations will be made differently-abled friendly by providing elevators and escalators.

• About 7,000 railway stations will be provided solar power in the medium-term. The work in this regard has already started for 300 stations.

• A new Metro Rail Policy will be announced with a focus on innovative models of implementation and financing, as well as standardisation and indigenisation of hardware and software. This is expected to facilitate greater private participation and investment in construction and operation.

• The Budget allocation for highways has been increased from Rs 57,976 crore in BE (Budget estimates) 2016-17 to Rs 64,900 crore in 2017-18.

• To facilitate better connectivity with ports and remote villages, 2,000 kms of coastal connectivity roads have been identified for construction and development.

• The FM has announced that a specific programme for the development of multi-modal logistics parks will be drawn up.

• Select airports in Tier-II cities will be taken up for operation and maintenance in the PPP (public private partnership) mode. To facilitate effective monetisation of land, the Airports Authority of India Act will be amended and the resources will be utilised for airport upgrade.

• The FM has announced a grant of Rs 2,41,387 crore for transportation in 2017-18. This magnitude of investment "will spur a huge amount of economic activity across the country and create more job opportunities'.