Key Points
The combined capital expenditure of the 16 large states, which account for 80% of the country's gross domestic product (GDP), on roads and bridges will fall to 0.58% of the gross state domestic product, compared to 0.61% in the previous fiscal, according to their budgets.Agencies..
States are set to spend less on road and bridge construction in this financial year, even as the Centre pushes ahead with spending on infrastructure creation...
The overall spending of 16 states and the Centre will be 1.44% of the GDP this fiscal, with the Centre is expected to spend 2.59 lakh crore on road infrastructure while the combined budgeted spending of 16 states is 1.42 lakh crore...
Experts highlighted that fiscal constraints, revenue expenditure and focus on the agricultural economy may be a cause for states spending less on roads and bridges, despite such infrastructure investments having a larger multiplier effect..
"Spending on roads and bridges is not a priority," he said.. "States are reluctant to utilise all the permitted borrowing, as they are reluctant to increase fiscal deficit," said DK Srivastava, chief policy adviser, EY India...
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