New Delhi [India], June 26 (ANI): The Union Finance Ministry has approved capital investment proposals worth Rs 56,415 crore in 16 states in the current financial year 2023-24. Approval has been given under the scheme ‘Special Assistance to States for Capital Investment 2023-24’.
The projects cover diverse sectors including health, education, irrigation, water supply, power, roads, bridges and railways. Funds have also been provided to states under this scheme to meet the state’s share of Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana to increase the pace of projects in these sectors.
Here is the table detailing the state-wise allocation:
In view of the high multiplier effect of capital expenditure and to promote capital expenditure by states, the scheme ‘Special Assistance to States for Capital Investment 2023-24’ was announced in the Union Budget 2023-24.
Under the scheme, state governments are being provided special assistance in the form of 50-year interest-free loans up to a total amount of Rs 1.3 lakh crore during the financial year 2023-24.
The plan has eight parts. Part-I is the largest with an allocation of Rs 1 lakh crore. This amount has been allocated among the states in proportion to their share in central taxes and duties as decided by the 15th Finance Commission. Other parts of the plan are either linked to reforms or to sector-specific projects.
In Part-II of the plan, Rs 3,000 crore for providing incentives to states for scrapping state government vehicles and ambulances, waiver of liabilities on old vehicles, tax concessions to individuals for scrapping old vehicles The amount has been set aside. Establishment of automated vehicle testing facilities.
Part-III and IV of the scheme aims to provide incentives to the states to improve urban planning and urban finance. An amount of Rs 15,000 crore has been earmarked for urban planning reforms, while an additional Rs 5,000 crore is to make urban local bodies creditworthy and encourage states to improve their finances.
The scheme also aims to increase the housing stock for police personnel and their families within police stations in urban areas. Amount of Rs. Rs 2,000 crore has been earmarked for this purpose under Part-V of the plan.
Another objective of the scheme is to promote national integration, take forward the concept of “Make in India” and promote the concept of “One District, One Product (ODOP)” through the construction of Unity Malls in each state. Amount of Rs. Rs 5,000 crore has been set aside for this purpose under Part-VI of the plan.
Part-VII of the plan, with an allocation of Rs. Rs 5,000 crore is to provide financial assistance to states for setting up libraries with digital infrastructure at panchayat and ward level for children and adolescents.
A similar scheme titled ‘Special Assistance to States for Capital Investment for 2022-23’ was also implemented by the Finance Ministry in the previous financial year 2022-23. Capital investment proposals worth Rs 95,147.19 crore have been approved under the scheme and an amount of Rs 81,195.35 crore has been released to the states.
The Scheme of Financial Assistance to States for Capital Investment or Expenditure, first introduced by the Finance Ministry in 2020-21 in the wake of the COVID-19 pandemic, has given a much timely boost to capital expenditure by states. (ANI)
This report is automatically generated from ANI news service. ThePrint takes no responsibility for its content.