HomeLatestCentre approves Rs 56,415 cr for states underneath 2023-24 capital funding scheme

Centre approves Rs 56,415 cr for states underneath 2023-24 capital funding scheme

New Delhi [India], June 26 (ANI): Union Finance Ministry has permitted capital funding proposals of Rs 56,415 crore in 16 states within the present monetary 12 months 2023-24. Approval has been given underneath the ‘Special Assistance to States for Capital Investment 2023-24’ scheme.

The tasks embody various sectors together with well being, schooling, irrigation, water provide, energy, roads, bridges and Railways. Funds for assembly the state share of Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana have additionally been supplied to the states underneath this scheme to reinforce tempo of the tasks in these sectors.

Here is the desk detailing the state-wise allocations:In view of a better multiplier impact of capital expenditure and as a way to present increase to capital spending by States, the scheme ‘Special Assistance to States for Capital Investment 2023-24’ was introduced within the Union Budget 2023-24.

Under the scheme, a particular help is being supplied to the state governments within the type of 50-year curiosity free mortgage as much as an general sum of Rs 1.3 lakh crore throughout the monetary 12 months 2023-24.

The scheme has eight elements 1 Part-I being the biggest with allocation of Rs 1 lakh crore. This quantity has been allotted amongst states in proportion to their share of central taxes and duties as per the award of the fifteenth Finance Commission. Other elements of the scheme are both linked to reforms or are for sector particular tasks.

In Part-II of the scheme, an quantity of Rs 3,000 crore has been put aside for offering incentives to States for scrapping of State Government automobiles and ambulances, waiver of liabilities on outdated automobiles, offering tax concessions to people for scrapping of outdated automobiles and organising of automated automobile testing services.

Part-IIIIV of the scheme goal at offering incentives to States for reforms in Urban Planning and Urban Finance. An quantity of Rs 15,000 crore is earmarked for Urban Planning Reforms, whereas further Rs 5,000 crore is for incentivising the States for making Urban Local Bodies creditworthy and bettering their funds.

The scheme additionally goals at rising the housing stock for the police personnel and their households throughout the police stations in city areas. An quantity of Rs. 2,000 crore is earmarked for this objective underneath Part-V of the scheme.

Another goal of the Scheme is to advertise nationwide integration, carry ahead the idea of “Make in India” and promote the idea of “One District, One Product (ODOP)” by means of development of Unity Mall in every State. An quantity of Rs. 5,000 crore has been put aside for this objective underneath the Part-VI of the scheme.

Part-VII of the Scheme, with an allocation of Rs. 5,000 crore is for offering monetary help to States for organising libraries with digital infrastructure at Panchayat and Ward stage for kids and adolescents.

The same scheme named ‘Special Assistance to States for Capital Investment for 2022-23’ was additionally executed by the Ministry of Finance within the final monetary 12 months 2022-23. Under the scheme, Capital Investment proposals of Rs 95,147.19 crore had been permitted and an quantity of Rs 81,195.35 crore was launched to the States.

The scheme for monetary help to States for capital funding or expenditure, first instituted by the Ministry of Finance in 2020-21, within the wake of Covid-19 pandemic has given a really well timed increase to capital spending by states. (ANI)

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