The Cabinet on Wednesday gave its approval to raise Rs 31,300 crore in 2016-17, to augment infrastructure spending, and to service the principal and interest against the extra budgetary resources (EBR) of Rs 16,300 crore by the government.
The principal and the interest in respect of the EBR of Rs 16,300 crore to be raised by PFC, IREDA, IWAI, and NABARD would be financed by the government by making suitable budgetary provisions in the demand of the respective ministries and departments.
In a statement, the government said this would supplement the efforts to improve infrastructure spending and improve the revenue-capital mix of the expenditure for a more sustainable growth.
“This decision is in line with the announcement made in the Budget Speech 2016-17 to augment infrastructure spending further. The government will permit mobilisation of additional finances to the extent of Rs 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority through raising of bonds during 2016-17,” added the statement.
OTHER CABINET DECISIONS
Rs 1,250-cr subsidy support to BSNL for deficit incurred by it in operating rural wire-line connections installed prior to April 1, 2002