Infrastructure boost in the North-eastern states: Key point for the budget
There are many tasks in front of the BJP government which were left in a mess by the previous government and they have to fix it now. Fixing the central treasury is one of them. The government’s fiscal consolidation moves have to be very tactful to avoid any adverse effect to any of the stakeholders.
The government is expected to announce a major infrastructure building approach for the North Eastern states with a special thrust on construction of roads. China is expected to invest in these projects. Poor connectivity with the major parts of the country is a major hindrance in growth and an announcement on toning up the network through the construction of modern roads is expected in the Budget. The government has announced a policy of improving infrastructure along the borders, where China has invested heavily.
Jaitley needs close to Rs 1.5 lakh crore to provide fertiliser subsidy to the farmers.
The government has in the past set up a financial institution, North Eastern Development Finance Corporation Ltd (NEDFCL), to improve project funding as well as North Eastern Electric Power Corporation or Neepco for better use of resources for electricity generation. May be in the coming months a similar new entity will be formed to focus exclusively on roads. Better infrastructure will provide a boost to tourism which is seen as a key development tool for the North East.
Source- The Times of India (Delhi Edition)
BJP government, Budget 2014, improving Infrastructure, Infrastructure, North Eastern Development Finance Corporation Ltd, union budget 2014-15
