HomeEducationFinance Ministry approves Rs 98.79 bn expenditure proposal of 27 states

Finance Ministry approves Rs 98.79 bn expenditure proposal of 27 states

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The Ministry of Finance has said, “It has approved Rs 9,876 crore worth of capital expenditure proposal of 27 states.”

The Ministry in its statement issued on Saturday, said, “So far the capital expenditure of Rs 9,879 crore of 27 states have approved by the Ministry of Finance. Out of which an amount of Rs 4,879 has already been released to the states as the first installment under the ‘Special Assistance to States for Capital Expenditure’ scheme.”

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“The installment has been released to all states, except Tamil Nadu as it has availed the benefits of the newly announced scheme. Which was announced on Oct 12 as a part of Atmanirbhar Bharat Package,” the statement said.

“The scheme is aimed at boosting capital expenditure by the state governments who are facing difficult financial environment this year due to the shortfall in tax revenue arising from the COVID-19 pandemic,” it said.

“Capital Expenditure has a higher multiplier effect, enhancing the future productive capacity of the economy, and results in a higher rate of economic growth. Therefore, despite the adverse financial position of the Central Government, it was decided to extend special assistance to the state governments in respect of capital expenditure, in the financial year 2020-21,” it added.

The capital expenditure projects have been approved in diverse sectors like health, rural development, water supply, irrigation, power, transport, education, urban development.

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Krishna Mali
Krishna Mali
Founder, CEO & Group Editor of TechGraph.
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