Expectations from Budget 2024, union budget 2024 The budget to be presented by Finance Minister Nirmala Sitharaman on July 23 will focus on increasing private sector participation in airports. Indian Railway Projectssays Kuljeet Singh, partner, EY India.
When asked about his key expectations from Budget 2024, he told TOI, “Important issues should be addressed in the upcoming budget of India Infrastructure improvements Promote economic growth and stability. Key expectations include privatization of existing airports, increasing private participation in airports and railways by privatizing or listing dedicated freight corridor (DFC) corridors.
Also check this | Full coverage on Budget 2024
Kuljeet Singh added, “There is also a dire need to reduce government stake in railway related entities such as IRCON, IRCTC etc. so that the government can re-utilise the freed up capital.”
Kuljit Singh also lists key focus areas for Budget 2024 for Finance Minister Sitharaman:
When asked about his key expectations from Budget 2024, he told TOI, “Important issues should be addressed in the upcoming budget of India Infrastructure improvements Promote economic growth and stability. Key expectations include privatization of existing airports, increasing private participation in airports and railways by privatizing or listing dedicated freight corridor (DFC) corridors.
Also check this | Full coverage on Budget 2024
Kuljeet Singh added, “There is also a dire need to reduce government stake in railway related entities such as IRCON, IRCTC etc. so that the government can re-utilise the freed up capital.”
Kuljit Singh also lists key focus areas for Budget 2024 for Finance Minister Sitharaman:
- Declaring the Electric Vehicle (EV) sector as infrastructure and extending benefits under it
FAME Scheme These steps are imperative to increase EV penetration. - Recognising smart meters as essential infrastructure will lead to increased efficiency in energy management. In addition, improving power distribution, especially through innovative strategies such as the central government taking over persistently underperforming state discoms, is crucial given the preference against privatisation in India.
- to encourage the
Green energy sector Viability gap funding should be provided to encourage the production of green hydrogen and biofuels. - Rebalancing tax structures for domestic investors to take into account the inequities with foreign investors in similar infrastructure investments is essential for equitable growth.
- Further, setting up a new entity to buy bonds from greenfield infrastructure projects and pool them for retail and institutional investors could help ease the pressure on banks for infrastructure loans.
- Addressing cash flow challenges in infrastructure projects is of paramount importance. Allowing infrastructure projects to distribute all available cash to investors irrespective of accounting profits or regulatory restrictions will increase investor confidence and enhance project viability.