In a significant move to bolster capital spending across various states, the Ministry of Finance has given its approval to capital investment proposals amounting to a whopping Rs 56,415 crore. This approval comes under the newly announced ‘Special Assistance to States for Capital Investment 2023-24’ scheme, which was introduced during the Union Budget 2023-24. The scheme aims to provide special assistance to states in the form of a 50-year interest-free loan, with an overall budget allocation of Rs 1.3 lakh crore for the financial year 2023-24.
According to a statement released by the finance ministry, the Department of Expenditure has given the green light to capital investment projects in 16 states for the current financial year. These projects span various sectors, such as health, education, irrigation, water supply, power, roads, bridges, and railways, indicating a comprehensive approach to bolstering infrastructure and public services.
The ‘Special Assistance to States for Capital Investment 2023-24’ scheme also extends its support to the Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana. Funds have been allocated to the states to enhance the progress of projects in these sectors, with a specific focus on meeting the state’s share of the funding.
This isn’t the first time such an initiative has been undertaken. In the previous financial year, the finance ministry successfully executed the ‘Special Assistance to States for Capital Investment for 2022-23’ scheme. Under this scheme, capital investment proposals totaling Rs 95,147.19 crore were approved, and an impressive amount of Rs 81,195.35 crore was disbursed to the states.
The scheme for financial assistance to states for capital investment/expenditure was initially introduced by the Ministry of Finance in 2020-21, aiming to address the challenges posed by the Covid-19 pandemic. Since its inception, the scheme has proved to be a timely boost to capital spending by states, allowing them to expedite their development plans and infrastructure projects.
These recent developments showcase the government’s commitment to empowering states and fostering growth through strategic capital investments. With the infusion of substantial financial resources, it is expected that the overall development and progress of these states will witness a significant boost in the coming years.
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