The highest amount of assistance totalling Rs 9,640 crore will be given to Bihar
New Delhi, NFAPost: The union government has approved Rs 56,415 crore to 16 states for various capital investment proposals under “Special Assistance to Capital Investment 2023-24”. The projects span various sectors including health, education, irrigation, water supply, power, roads, bridges and railways.
Funds for meeting the state share of the Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana have also been provided under this scheme to enhance the pace of the projects in these sectors.
The highest amount of assistance totalling Rs 9,640 crore will be given to Bihar. It will be followed by Madhya Pradesh at Rs 7,850 crore and West Bengal at Rs 7,523 crore.
The lowest allocation will go to Goa at Rs 386 crore. It will be followed by Rs 388 crore to Sikkim and Rs 399 crore to Mizoram.
The scheme “Special Assistance to Capital Investment 2023-24” was announced in Union Budget 2023 to boost the capital expenditure spending on states and generate a higher multiplier effect. Under the scheme, special assistance is being provided to the state governments in the form of a 50-year interest-free loan up to an overall sum of Rs 1.3 trillion during the financial year 2023-24 (FY24).
A similar scheme “Special Assistance to States for Capital Investment for 2022-23” was also executed by the Ministry of Finance in the last financial year. Under the scheme, capital investment proposals of Rs 95,147.19 crore were approved and an amount of Rs 81,195.35 crore was released to the states, the ministry said in a statement.
The scheme for financial assistance to states for capital expenditure was first instituted by the Ministry of Finance in FY21 in the wake of the Covid-19 pandemic.
