Login With Google
Funds to States for Capital Expenditure
Why is it in news?
- Government of India has decided to provide an additional amount of upto Rs 15,000 crore to Statesas for spending on capital projects.
- The Department of Expenditure of Finance Ministry has issued fresh guidelines in this regard.
Details:
- The funds to be provided by Centre would be interest free 50 year loan.
- The Funds shall be used for new and ongoing capital projects.
- The funds may also be used for settling pending bills in ongoing capital projects.
The Scheme has three Parts:
- Part-I: This part of the scheme is for the North-East and Hill States and an amount of Rs.2,600 crore has been earmarked for this part.
- Part-II:
(1) This part of the scheme is for all other States not included in Part-I. An amount of Rs 7,400 crore is earmarked for this part.
(2) This amount has been allocated amongst these States in proportion to their share of central taxes as per the award of the 15th Finance Commission for the year 2021-22.
- Part-III: This part of the scheme is for providing incentives to States for monetization/recycling of infrastructure assets and disinvestment of the State Public Sector Enterprises (SPSEs).
Source: PIB.