New Delhi, Sep 3 (IANS): Union Minister Jayant Sinha said on Thursday that the government plans to employ enormous financial resources to hasten infrastructure development in railways and highways for boosting economic growth.

According to the Minister of State (MoS) for Finance Sinha, government is “very focused” on infrastructure creation and will invest up to Rs.8.5 lakh crore in the Indian Railways alone.

"After a decade of under investment... We have decided to invest Rs.8.5 lakh crore in the Indian railways. This is will change the face of railways in India," Sinha said at an industry event organised by the Automotive Component Manufacturers Association (ACMA).

On the domestic deflationary trend as seen in the recently released macro data, the minister stated that the Reserve Bank of India (RBI) will take appropriate action on the issue.

"(Deflation) will be put into account when RBI considers its monetary policy," he said.

"RBI takes into account all of that data.”

After having cut the short term lending rate thrice thus far in this calendar year to bring it down to 7.25 percent, the RBI kept key lending rates unchanged during its last monetary policy meet held on August 4.

RBI that time said that further cuts can only be effected if commercial lenders pass on the previous reductions to borrowers. RBI has so far reduced lending rates by 75 basis points in 2015.

The RBI is scheduled to review its monetary policy on September 29.

Sinha elaborated that the world economy is being impacted by a strong deflationary trend. Notwithstanding this India has rem“ined "a brigh” spot" in the global economy.

Sinha also expressed his disappointment over the impasse on the goods and service tax (GST) bill. The government was not able to push the GST bill through during the monsoon session of parliament.