More funds for developmental projects likely

 The new BJP-led government will not shy away from allocating more funds to developmental projects in the upcoming budget despite facing a daunting task of cutting down expenditure to contain bludgeoning fiscal deficit.

Instructions have been issued to central ministries and departments asking them to send their proposals at the earliest to the finance ministry if any additional fund is required to carry forward the on-going projects and programmes in the financial year 2014-15.

“Although the provisions made in the interim budget will remain, some developmental projects needing special attention and extra allocation will be considered,” informed sources in the finance ministry told Deccan Herald.

Development has been the main plank in the poll agenda of BJP which has sold middle-class dreams of building good quality infrastructure, education and sanitation in every state.

Finance Minister Arun Jaitley, who will deliver his first budget in a month’s time, has already listed five broad areas — infrastructure, building suburban and new urban townships, massive skill development programmes, tourism, and lowering costs for business — as his priority areas. 

Jaitley is widely expected to make provisions for these in his budget.

Besides, the party has also promised to unblock stalled investments in power, road and rail projects to revive economic growth that has fallen to a decade low of below 5 per cent.

Jaitley, who is also the defence minister, has indicated that he has an open mind on allowing foreign direct investment in the sector. To a question on more FDI in defence sector, Jaitley said on Saturday, “wait for four more weeks,” signalling his budget will deliver the much expected FDI relaxation in the sector.

Jaitley is likely to present the budget in early July. This will also be the first major policy document of the Narendra Modi government that will spell out the direction for the economy in the next one year.