finance minister asks various ministries to expedite capital expenditure
He also urged the Ministries and their Central Public Sector Undertakings (CPSEs) to clear the dues of Micro, Small and Medium Enterprises (MSMEs) at the earliest, during a meeting with senior government officials to discuss the infrastructure framework.
This was the fifth review meeting of the Finance Minister with the Ministries and Departments on the Infrastructure Framework.
According to an official release, the meeting discussed the capital expenditure of the ministries and their CPSEs, the status of implementation of the budget announcements and measures to increase investment in the infrastructure sector.
“While reviewing the capital expenditure performance of the Ministries and their CPSEs, the Finance Minister emphasized that the increased capital expenditure will play an important role in bringing the economy back on track after the pandemic, and the Ministries will have to face the consequences,” the release said. encouraged to accelerate their capital expenditure.
Ministries were urged to follow the objective of making capital expenditure more than the prescribed target.
A provision of capital expenditure of Rs 5.54 lakh crore has been made in the budget for the financial year 2021-22. This is 34.5 percent more than the budgeted estimate for 2020-21.
Sitharaman said, however, efforts to increase capital expenditure from budgetary provisions have to be supported by public sector undertakings.
He said that spending on infrastructure is not just the budgetary expenditure of the central government and includes infrastructure expenditure by the state governments and the private sector. It also includes government expenditure through extra budgetary resources.
The Finance Minister said that therefore the Ministries have to actively work on arranging finance for the projects through innovative ways of funding and provide all kinds of assistance to the private sector to increase the infrastructure expenditure.
He also asked the ministries to explore the possibility of public-private partnerships for viable projects.
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