Team Blitz India
NEW DELHI: The Department of Expenditure, Ministry of Finance, has approved capital investment proposals of Rs. 56,415 crore in 16 States in the current financial year. The approval has been given under the scheme entitled Special Assistance to States for Capital Investment 2023-24.
Capital investment projects in diverse sectors which have been approved include health, education, irrigation, water supply, power, roads, bridges and railways. Funds for meeting the State share of Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana have also been provided to the States under this scheme to enhance pace of the projects in these sectors.
In view of a higher multiplier effect of capital expenditure and in order to provide boost to capital spending by States, the scheme ‘Special Assistance to States for Capital Investment 2023-24′ was announced in the Union Budget 2023-24.
Under the scheme, special assistance is being provided to the State Governments in the form of 50-year interest free loan up to an overall sum of Rs. 1.3 lakh crore during the financial year 2023-24.
The scheme has eight parts, Part-I being the largest with allocation of Rs. 1 lakh crore. This amount has been allocated amongst states in proportion to their share of central taxes & duties as per the award of the 15th Finance Commission. Other parts of the scheme are either linked to reforms or are for sector specific projects.
