NEW DELHI: The Finance Ministry said on Saturday that it had approved Rs 9,879 crore for capital expenditure for 27 states under the Atmanirbhar Bharat package.
All states except Tamil nadu They have taken advantage of the recently announced “special assistance to states for capital expenditure” plan. The scheme aims to boost capital spending by state governments facing a difficult financial environment this year due to tight tax revenues. Capital expenditures have a higher multiplier effect, improve the future productive capacity of the economy, and result in a higher rate of economic growth. “Despite the adverse financial situation of the Center, it was decided to extend special assistance to state governments with respect to capital expenditures, in the 2020-21 financial year, “said a statement from the Ministry of Finance.
The scheme has received a good response from state governments. An amount of Rs 4,939.8 million has already been provided to states as the first payment of the plan. Capital investment projects have been approved in various sectors of
economics such as health, rural development, water supply, irrigation, transportation, education and urban development.
The scheme has three parts. Part I of the plan covers the Northeast region. Under this, 200 million rupees are allocated to seven northeastern states. In view of a larger population and geographic area, Assam 450 million rupees have been allocated under the plan, according to the statement.
Part II of the scheme is for all other states not included in Part I. An amount of Rs 7.5 billion rupees is earmarked for this. This amount has been allocated among these states in proportion to their share of the central tax based on the provisional award from the 15th Finance Commission for 2020-21.
The third part of the scheme aims to push forward various citizen-centered reforms in the states. Under this plan, an amount of Rs 2 billion has been reserved. This amount will be available only to those states that carry out at least three of the four reforms specified by the Ministry of Finance with respect to the reform linked to additional borrowing permits. The reforms are: a nation’s ration card, ease of doing business, reform of local urban agencies / utilities and reform of the electricity sector, he said.
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