Crowding in private investment: Pain points & what's on offer in Budget

Pain points

The government’s final consumption expenditure (GFCE) is nearly 20 per cent lower than it was before the Covid-19 pandemic. This is in contrast to many key economies which have seen higher spending now than before.

Attempts at raising capital for infra spending through the national monetisation framework have not been as successful as was hoped. The government raised more money than targeted in 2021-22. 

But the amount raised in the subsequent year has been significantly below target.

What’s on offer

The government’s infrastructure finance secretariat is set to help stakeholders to bring