The State Government which is struggling to raise financial resource to meet its commitments got some relief with the Central Government approving capital investment proposals to the tune of ₹2,102 crore.
The approval forms part of the Special Assistance to States for Capital Investment 2023-24 announced by the Centre 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 ₹ 1.3 lakh crore during the current fiscal.
Capital investment projects in diverse sectors including health, education, irrigation, water supply, power, roads, bridges and railways have been approved. In addition, funds for meeting the State’s share of Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana have also been provided to the States
The scheme was conceived to provide capital spending by States in view of the higher multiplier effect of capital expenditure, according to Union Finance Ministry. A similar scheme Special Assistance to State for Capital Investment for 2022-23 was executed by the Ministry last fiscal wherein capital investment proposals of ₹ 95,147.19 crore were approved and an amount of ₹ 81,195.35 crore was released, the Finance Ministry said.
