Infra plan lacks prudent investment assumptions
Months after Prime Minister Narendra Modi laid out an optimistic target of Rs 100 lakh crore investment on infrastructure in his government’s second term, Finance Minister Nirmala Sitharaman added Rs 5 lakh crore more to make it sound even more robust at Rs 105 lakh crore.
She also unveiled a detailed roadmap of investment, promising generously to almost all infra sectors comprising rail, road, energy, digital, rural, urban infra, health and education. The only thing missing from her assurance appeared to be a realistic assumption of funds.
At a time when both the Centre and states were staring at steep fiscal slippage originating from a decline in tax revenue, lower nominal GDP growth and higher expenditure, the latest infra investment plan expected nearly 40% contribution each from the centre and the federal bodies.
