Atmanirbhar: Finance ministry OKs Rs 9,800cr for 27 states – Times of India
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NEW DELHI: The finance ministry on Saturday said it had approved Rs 9,879 crore for capital expenditure for 27 states under the Atmanirbhar Bharat package.
All states except Tamil Nadu have availed benefits of the newly announced scheme for “special assistance to states for capital expenditure”. The scheme is aimed at boosting capital expenditure by state governments who are facing a difficult financial environment this year due to the shortfall in tax revenue. Capital expenditure has a higher multiplier effect, enhancing the future productive capacity of the economy, and results in a higher rate of economic growth. “Despite the adverse financial position of the Centre, it was decided to extend a special assistance to the state governments in respect of capital expenditure, in financial year 2020-21,” said a finance ministry statement.
The scheme has received a good response from the state governments. An amount of Rs 4,939.8 crore has already been released to states as the first instalment under the scheme. The capital expenditure projects have been approved in diverse sectors of
economy such as health, rural development, water supply, irrigation, transport, education and urban development.
The scheme has three parts. Part I of the scheme covers the northeastern region. Under this, Rs 200 crore is allocated to seven northeastern states . In view of higher population and geographical area, Assam has been allocated Rs 450 crore under the scheme, the statement said.
Part II of the scheme is for all other states not included in Part I. An amount of Rs 7,500 crore is earmarked for this. This amount has been allocated amongst these states in proportion to their share of central tax as per the interim award of the 15th Finance Commission for 2020-21.
The third part of the scheme is aimed at pushing various citizen-centric reforms in the states. Under this plan, an amount of Rs 2,000 crore has been set aside. This amount will be available only to those states who carry out at least three out of the four reforms specified by finance ministry regarding reform linked additional borrowing permissions. The reforms are — one nation one ration card, ease of doing business reform, urban local body/ utility reform and power sector reform, it said.
All states except Tamil Nadu have availed benefits of the newly announced scheme for “special assistance to states for capital expenditure”. The scheme is aimed at boosting capital expenditure by state governments who are facing a difficult financial environment this year due to the shortfall in tax revenue. Capital expenditure has a higher multiplier effect, enhancing the future productive capacity of the economy, and results in a higher rate of economic growth. “Despite the adverse financial position of the Centre, it was decided to extend a special assistance to the state governments in respect of capital expenditure, in financial year 2020-21,” said a finance ministry statement.
The scheme has received a good response from the state governments. An amount of Rs 4,939.8 crore has already been released to states as the first instalment under the scheme. The capital expenditure projects have been approved in diverse sectors of
economy such as health, rural development, water supply, irrigation, transport, education and urban development.
The scheme has three parts. Part I of the scheme covers the northeastern region. Under this, Rs 200 crore is allocated to seven northeastern states . In view of higher population and geographical area, Assam has been allocated Rs 450 crore under the scheme, the statement said.
Part II of the scheme is for all other states not included in Part I. An amount of Rs 7,500 crore is earmarked for this. This amount has been allocated amongst these states in proportion to their share of central tax as per the interim award of the 15th Finance Commission for 2020-21.
The third part of the scheme is aimed at pushing various citizen-centric reforms in the states. Under this plan, an amount of Rs 2,000 crore has been set aside. This amount will be available only to those states who carry out at least three out of the four reforms specified by finance ministry regarding reform linked additional borrowing permissions. The reforms are — one nation one ration card, ease of doing business reform, urban local body/ utility reform and power sector reform, it said.
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