CARGOCONNECT-MARCH2024 - Flipbook - Page 18
FOCUS : BUDGET 2024
while presenting the Union Budget 2024.
The ratio of CAPEX-to-GDP, which rose to 3.3 per
cent for FY24, is estimated at 3.4 per cent in the new
昀椀nancial year.
“To further strengthen the growth momentum, the
government allocated `1.3 lakh crore in BE 2023-24
towards 昀椀fty-year interest-free loans to the states
to boost their respective capital expenditures. The
scheme will be continued this year,” the Finance
Minister added.
Capital expenditure means spending on infrastructure such as roads and highways, ports, railways,
airports, and other capital projects. For this 昀椀scal year,
the government had set a record CAPEX target of `10
lakh crore, a 37.4 per cent increase from the revised
budget estimate of `7.28 lakh crore for FY23, which
was almost three times of `3.11 lakh crore capital
expenditure in FY20.
“All forms of infrastructure, physical, digital or social,
are being built in record time. All parts of the country
are becoming active participants in economic growth,”
Sitharaman declared, highlighting the multifaceted
approach towards infrastructure enhancement across
various sectors.
This focus on improving infrastructure will help to
create a more integrated and e昀케cient transportation
network. It will further improve modal share and
lead to lower transit times and reduced inventory and
logistics cost, directly impacting the bottom line for
supply chain businesses.
“Projects have been identi昀椀ed under the PM Gati
Shakti for enabling multimodal connectivity. They
will improve logistics’ e昀케ciency and reduce cost,” the
FM noted.
Sitharaman said that three major railway corridors,
which include an energy, mineral and cement corridor,
a port connectivity corridor, and a high tra昀케c density
corridor will be constructed. This move is expected to
shift the burden from roads to railways with the aim
to reduce logistics cost.
According to the FM, the resultant decongestion
of the high-traffic corridors will help in improving
operations, resulting in safety and higher travel speed.
“Together with dedicated freight corridors, these three
economic corridor programmes will accelerate our GDP
growth and reduce logistic costs.”
Such a focussed approach for aiding freight movement is expected to help achieve the National Rail
Plan targets having a 50 per cent modal share in the
medium term.
In order to improve air connectivity, which will also
facilitate air cargo, the Interim Budget has proposed
expansion of existing and development of new airports.
“The expansion of existing airports and development
of new airports will continue expeditiously,” Finance
Minister Nirmala Sitharaman said and emphasised
that the country’s aviation sector has been galvanised
in the past 10 years.
“Roll out of air connectivity to tier II and tier III
cities under UDAN scheme has been widespread. Five
hundred and seventeen new routes are carrying 1.3
crore passengers,” she said.
18 | CARGOCONNECT MARCH 2024
