The capital investment outlay will be raised by 33% to Rs 10 lakh crore in the financial year 2023-’24, Finance Minister Nirmala Sitharaman on Wednesday said as she unveiled the Union Budget.

The allocation is up from Rs 7.5 lakh crore in 2022-’23. Sitharaman said the latest allocation would amount to 3.3% of India’s gross domestic product.

The government laid emphasis on capital expenditure to push economic growth hit by the coronavirus pandemic.

The finance minister said the Centre will also continue 50-year interest-free loans to state governments for one more year to aid infrastructure investment with an outlay of Rs 1.3 lakh crore.

In her speech, Sitharaman also said the government will have an outlay of Rs 2.4 lakh crore for Indian Railways. This is nine times the allocation made in 2013-’14.

Last year, the government had allocated Rs 1.4 lakh crore for the Railways. Of this amount, Rs 1.37 lakh crore had been earmarked for capital expenditure and Rs 3,267 lakh crore were for revenue expenditure.

The finance minister on Wednesday announced that 50 additional airports, water aerodromes, landing grounds will be revived for regional air connectivity.

She added that PM Awas Yojana outlay is being enhanced by 66% to over Rs 79,000 crore. In the last Budget, Rs 48,000 crore was allocated for the housing scheme.

Sitharaman said the Centre will create Urban Infrastructure Development Fund on the lines of Rural Infrastructure Development Fund and it will be managed by the National Housing Bank.