Government Allocates ₹50,571 Crore to States as Special Support
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New Delhi, Dec 3 (NationPress) The Government has allocated ₹50,571.42 crore to states as part of its ‘special assistance for capital investment’ initiative aimed at increasing expenditure on various development projects during the first eight months of the ongoing financial year, as disclosed by Minister of State for Finance, Pankaj Chaudhary in the Lok Sabha.
The minister indicated in a written response that 23 out of the 28 states, excluding Arunachal Pradesh, Haryana, Kerala, Punjab, and Telangana, utilized the interest-free facility offered by the Union government in the current financial year.
Among these states, the highest beneficiaries of the facility included Uttar Pradesh (₹7,007.93 crore), Madhya Pradesh (₹5,074.94 crore), Bihar (₹5,408.88 crore), Rajasthan (₹4,552.01 crore), West Bengal (₹4,416.23 crore), Assam (₹3,181.97 crore), Odisha (₹3,085.44 crore), Maharashtra (₹2,617.70 crore), Andhra Pradesh (₹2,616.27 crore), and Karnataka (₹2,272.87 crore).
Finance Minister Nirmala Sitharaman has allocated ₹1.5 lakh crore for the Centre's ‘special assistance for capital investment’ scheme for states in the Budget for 2024-25.
The Centre's Special Assistance to States for Capital Investment scheme offers 50-year interest-free loans to state governments to promote capital expenditure.
Capital investment projects across various sectors have received approval under the scheme, including health, education, irrigation, water supply, power, roads, bridges, and railways.
Funding for the state’s contributions to the Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana is also provided under this scheme to accelerate project implementation in these areas.
Some elements of the scheme are either tied to reforms or aimed at specific sectors.
The initiative also incentivizes states to scrap government vehicles and ambulances, waive liabilities on older vehicles, provide tax benefits for individuals scrapping old vehicles, and establish automated vehicle testing facilities.
Moreover, states are encouraged to pursue reforms in Urban Planning and Urban Finance.
The scheme further aims to enhance housing availability for police personnel and their families within police stations in urban regions.
Another goal of the scheme is to foster national integration, advance the ‘Make in India’ initiative, and promote the ‘One District, One Product (ODOP)’ concept through the establishment of Unity Malls in each state.
