Budget 2022-23: Higher allocation in infra sector to fuel economic recovery

Brokerages expect government spending on infrastructure to continue in FY23 with sizeable growth in capital expenditure in roads, highways, railways, defence, and housing sectors

Brokerages expect government spending on infrastructure to continue in financial year 2022-23 (FY23) with sizeable growth in capital expenditure in roads, highways, railways, defence, and housing sectors.

The recently launched National Infrastructure Pipeline, Gati Shakti, and National Bank for Infrastructure Financing & Development (NaBFID) will boost investment-led growth and provide a public sector-led capex push, while private capex will be driven by the production-linked incentive (PLI) schemes, brokerages said.

“We expect 25-30 per cent higher allocation year-on-year to the Ministry of Road Transport & Highways in the Budget. This would greatly speed up the construction of highways and expressways,” said