Budget 2023 to increase capex for infra projects for growth: Experts

Union Budget 2023 will increase capital expenditure for infrastructure by 25-30 per cent as it spends on highways, railways, and digital infrastructure, experts have said.

The government’s infrastructure focus will continue, as such spending has a multiplier effect on overall economic growth. FY24 budgetary allocation for roads and highways is likely to increase by 12-15 per cent and for railways, it will rise by 30 per cent, said Mehul Pandya, managing director and chief executive officer of CareEdge (CEO), a rating and advisory group.

The last Budget focused on high-impact areas and increased capex outlay by 35.4 per cent (from Rs 5.54 trillion to Rs 7.50 trillion in FY 2022-23) and that investment is likely to strongly augment infrastructure spending, according to a report by EY.