Interest Free Loans To States: In order to promote capital expenditure in the states, the central government has given its approval to provide interest-free and long-term capital expenditure loan of Rs 56,415 crore to 16 states for 2023-24. The Finance Ministry has given this information by issuing a statement. This loan has been approved under Special Assistance to States for Capital Investment (Special Assistance to States for Capital Investment) 2023-24.
Lending has been approved for capital investment projects in sectors like health, education, irrigation, water supply, power, roads, bridges and railways. Under Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana, funds have also been made available for faster implementation of projects related to these schemes on the basis of the share of the states.
In order to increase capital expenditure by the states, the Special Assistance to States for Capital Investment 2023-24 scheme was announced in the budget of 2023-24. Under this special scheme, states are being given an interest-free loan of Rs 1.3 lakh crore in 2023-24 for 50 years. According to the 15th Finance Commission, this amount is being given to the states on the basis of the proportion of the states’ share in central tax and duty.
This scheme is divided into 8 parts. In which there is a provision to give a loan of Rs 1 lakh crore in the first part. The amount to be given in the remaining parts will be given on the basis of the performance of the states. In which, apart from the replacement of government vehicles and ambulances, urban planning and urban finance will be given to the urban local body. Apart from this, funds are also being provided for setting up libraries and digital infrastructure at the panchayat and ward levels.
Out of the Rs 56,415 crore approved by the Finance Ministry, Rs 9,640 crore has been given to Bihar, Rs 7,850 crore to Madhya Pradesh, Rs 7,523 crore to West Bengal, Rs 6,026 crore to Rajasthan, Rs 4,528 crore to Odisha, Rs 4,079 to Tamil Nadu. Rs crore, Rs 3647 crore to Karnataka, Rs 3478 crore to Gujarat and Rs 3195 crore to Chhattisgarh have been approved.
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