Budget 2016: Govt to allocate Rs 2.21 lakh crore to infra in FY17, up 22.5%

Moneycontrol BureauFinance Minister Arun Jaitley today said the government will increase public spending on infrastructure by 22.5 percent, from Rs 1.80 lakh crore to Rs 2.21 lakh crore.Of this, the allocation to the roads sector, including in the Pradhan Mantri Gram Sadak Yojana stood at Rs 97,000 crore, Jaitley said while presenting the third Budget of the NDA government."In the road sector, there were more than 70 projects that were languishing at the beginning of the year, due to legacy factors. Aggregate length of these projects was about 8,300 kms involving more than Rs 1 lakh crore investment. With exemplary and proactive interventions, nearly 85 percent of these projects have been put back on track," he said.The FM added that India’s highest ever kilometres of new highways were awarded in 2015. "At the same time, India’s highest ever production of motor vehicles was achieved in 2015. This is a sign of growth in the economy; but it presents a challenge also," he said. "Therefore, we have speeded up the process of road construction."Jaitley also said the government would open up the road transport sector and would make amendments to the Motor Vehicles Act."Entrepreneurs will be able to operate buses on various routes, subject to certain efficiency and safety norms. The major benefits of this game changing initiative will be provision of more efficient public transport facilities, greater public convenience, new investment in this moribund sector, creation of new jobs for our youth, growth of start-up entrepreneurs and other multiplier effects," he said.