Finance Minister Nirmala Sitharaman Reviews Big Spending Plans for Roads and Telecom
Finance Minister Nirmala Sitharaman chaired a review meeting on the Budgeted capital expenditure for the Ministry of Road, Transport and Highways and the Department of Telecom, Ministry of Communication, in New Delhi, on Tuesday.
Attendees
The review meeting was attended by the Secretaries of the Department of Economic Affairs, the Ministry of Road, Transport and Highways, and the Department of Telecom.
Meeting Agenda
A series of review meetings have been scheduled with Ministries/Departments with significant capex outlays. The meetings will be chaired by the Union Minister for Finance and Corporate Affairs Nirmala Sitharaman to review the progress of capital expenditure (capex) in the coming days. A capital expenditure, or capex, is used to set up long-term physical or fixed assets.
Ministry of Communication
During the review of the Ministry of Communication, the details of capex plans in 2024-25 for Bharat Net Programme, 4G mobile projects – Indigenous Technology, Network for Spectrum, and 4G saturation and other mobile projects were discussed today. The estimated capex budgetary allocation for the Ministry of Communication in 2024-25 stands at Rs 28,835 crore.
Secretary, Department of Telecommunications (DoT), apprised the Union Finance Minister about the capex plan and targets for the BharatNet project, which aims at providing affordable broadband services to citizens in rural and remote areas. He also apprised about the capital expenditure plans for the 4G saturation project and other mobile tower projects, which seek to improve connectivity in uncovered villages in remote and difficult areas.
Secretary, DoT, apprised the Union Finance Minister that with the help of the completely indigenous 4G technology, 21,000 4G mobile towers are on the air with 30 lakh consumers. Secretary DoT also apprised FM Sitharaman about the 4G Saturation drive that aims to cover aspirational districts and aspirational blocks. Secretary DoT assured the Union Finance Minister that all targets are on track and will be met in time.
Ministry of Road, Transport and Highways
During the review of the financial and physical progress of capex for Ministry of Road, Transport and Highways, Secretary MoRTH apprised the Union Finance Minister about the remarkable growth of National Highway Network in last 10 years with almost 2.4 times increase in average annual construction of national highways in 2014-2024 period in comparison to 2004-2014 with a focus on the growth of 2 Lane / 2 Lane with Paved Shoulder, 4 Lane and above, and High-Speed Corridors.
Secretary MoRTH, further apprised the Union Finance Minister about the Capex plans for the remaining 2024-25. Secretary MoRTH informed the Union Finance Minister that efforts are being made to attract private capital through various measures and efforts are underway to ensure that asset recycling targets are also met. Budgetary Capex allocation for the Ministry of Road, Transport and Highways has increased by 90 per cent from Rs 1.42 lakh crore in 2019-20 to Rs 2.72 lakh crore in 2024-25.
Conclusion
Emphasising the meaningful creation of assets for public utility, FM Sitharaman underlined the importance of setting quarterly targets and ensuring that they are achieved within a stipulated timeframe. Sitharaman exhorted the respective Ministries to expedite implementation and make up for the Q1 and Q2 targets in Q3 2024-25 itself.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money and economic policies. In India, this role is currently held by Nirmala Sitharaman.
Nirmala Sitharaman -: Nirmala Sitharaman is an Indian politician who is the current Finance Minister of India. She helps make decisions about how the government spends and saves money.
New Delhi -: New Delhi is the capital city of India. It is where many important government buildings and offices are located.
capital expenditure -: Capital expenditure refers to the money the government spends on building and improving things like roads, schools, and hospitals. It is different from money spent on daily operations.
Ministry of Road, Transport and Highways -: This is a part of the Indian government that is responsible for building and maintaining roads and highways. They make sure that people can travel safely and efficiently.
Department of Telecom -: The Department of Telecom is a part of the Indian government that manages communication services like telephones and the internet. They work to improve connectivity across the country.
budget allocations -: Budget allocations are the amounts of money set aside for different government departments and projects. It helps in planning how much money will be spent on various needs.
Rs 28,835 crore -: This is a large amount of money, specifically 28,835 crore rupees. In India, a crore is equal to 10 million, so this is a very big number.
Rs 2.72 lakh crore -: This is another large amount of money, specifically 2.72 lakh crore rupees. In India, a lakh is equal to 100,000, so this is an even bigger number.
BharatNet -: BharatNet is a government project in India aimed at providing high-speed internet to rural areas. It helps people in villages get connected to the internet.
4G mobile towers -: 4G mobile towers are structures that help provide 4G internet and phone services. 4G is a type of technology that allows for faster internet speeds on mobile phones.