“There is no decrease in public spending on Capex”: FM Sitharaman after the budget is 2025

Federation Minister Nermalla Setharmann confirmed on Saturday that there is no decrease in public spending on capital spending. “We are still focusing on the double influence showed by the capital expenditures shown by the government. 2024-25,” she said at press conferences hours after the budget was presented.

Sitharaman’s comments come amid disappointment of industry due to the lack of significant increases in infrastructure. The budget allocated 2,55,445 rupees to the Ministry of Iron Rail Roba of 2,78,000 rupees in the previous fiscal year.

This silent growth contrasts sharply with expectations. Analysts expected an increase of 10-15 % in budget allocations for these sectors, given the goals of expansion in the aggressive infrastructure in India linked to the VIKSITIT BHARAT 2047 vision. The absence of any mention of the railway infrastructure and roads in the Sitraman budget letter increases many fears.

Despite this, the Minister of Finance stressed the strategic shift in focus-from direct government spending to reviving partnerships between the public and private sectors (PPPS) and accelerate the liquefaction of assets.

Sandeep uphyay, Managing Director-The Centrum Capital, highlighted the plan to liquefy the new government assets in the period 2025-30, which aims to open 10 rupees for new projects. “This initiative is expected to enhance stock investments that affect the need, which enhances the general sectoral growth,” he said.

Over the past decade, the National Roads Network has expanded by 60 %, largely driven by successful PPP models. The government now aims to attract more private capital, and take advantage of the provincial sector capabilities to provide large -scale projects.

In addition, the budget provided the Urban Crore Crore Crore Fund, designed to support urban development by financing up to 25 % of the costs of the projectable project. “There is a great focus on cities as engines for economic growth. This fund will motivate infrastructure projects in urban areas, which leads to development development where there is an urgent need.”

The Minister of Finance also urged the states to benefit from the India Infrastructure Development Fund (IIPDF) to develop strong proposals for PPP, which indicates a clear intention to develop decentralized infrastructure.