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Front-load capital expenditure, ensure clearance of MSMEs' dues, FM tells ministries

During FM's meeting with ministries' officials, their capital expenditure plans, status of implementation of budget announcements and measures to expedite infrastructure investment were discussed

twitter-logoBusinessToday.In | June 4, 2021 | Updated 19:36 IST
Front-load capital expenditure, ensure clearance of MSMEs' dues, FM tells ministries
Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman, while chairing a meeting on the infrastructure road map on Friday, asked ministries to front-load their capital expenditure. She also asked ministries and their CPSEs to ensure the clearance of MSMEs' dues at the earliest.

During the meeting, the capital expenditure plans of ministries and their CPSEs, the status of implementation of budget announcements and measures to expedite infrastructure investment were discussed.

Sitharaman asked ministries to aim to achieve more than their CAPEX targets.

She said the enhanced CAPEX will play a critical role in revitalising the economy post-pandemic and encouraged the ministries to front-load their capital expenditure.

Also read: 'Is the GST Council heartless?': Here's what FM Sitharaman has to say

The Budget for Financial Year 2021-22 provided a capital outlay of Rs 5.54 lakh crore, a sharp increase of 34.5 per cent over the Budget estimate of 2020-21. She said efforts from the budgetary side to increase the capital expenditure have to be complemented by the PSEs.

The FM said the infrastructure expenditure is not just central government budgetary expenditure on infrastructure and includes infrastructures pending by states and the private sector.

Ministries have been told to actively work on getting projects funded through innovative structuring and financing and provide all support to the private sector for enhancing infrastructure spending.

The FM also asked ministries to explore PPP mode for viable projects. She also asked the ministries and their CPSEs to ensure clearance of MSMEs' dues at the earliest.

Secretaries were also told to push expenditure on large important projects.

Finance secretary, secretary, department of economic affairs, secretary, department of public enterprises, secretary, power and chairman, railway board, among others attended the meet.

Also read: Exclusive: GoM for retaining 5% tax on Covid jabs; tax cut on PPEs, ventilators, sanitisers

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