Ministry of Finance has approved capital projects worth Rs. 2,903.80 crore covering 8 states under the scheme titled, “Special Assistance to States for Capital Expenditure for 2021-22”. It also released Rs. 1,393.83 crore to the eight states, which are Bihar, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Punjab, Sikkim and Telangana.
✅Finance Ministry approved capital expenditure projects of Rs. 2,903.80 cr in 8 States
— Ministry of Finance (@FinMinIndia) September 25, 2021
✅Rs. 1,393.83 cr released to 8 States
✅Scheme “Special Assistance to States for Capital Expenditure for 2021-22” gives timely stimulus to economic recovery
Read more➡️https://t.co/4qhDVcBRX4 pic.twitter.com/dDA7SnRs6h
The ‘Special Assistance to States for Capital Expenditure for 2021-22′ scheme was brought in considering the higher multiplier effect of capital expenditure and provide the much-needed relief and resources after the second wave of the COVID-19 pandemic.
‘Special Assistance to States for Capital Expenditure for 2021-22′ scheme is divided into three parts. The first part of the scheme covers the eight North-Eastern states Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura and also includes the hill States of Uttarakhand and Himachal Pradesh. Assam, Himachal Pradesh and Uttarakhand were allocated Rs. 400 crores each while the remaining seven North-Eastern states received an allocation of Rs. 200 crores each.
The second part of the scheme deals with those states not included in the first part with an allocation of Rs 7,400 crores which is to be distributed in proportion to the share of central taxes as per the award of the 15th Finance Commission for the year 2021-22.
The third part of this scheme is meant to provide incentives to State Governments and help them in privatization/disinvestment of the State Public Sector Enterprises (SPSEs) and also monetization/recycling of assets. Additional funds will be given to the states under this part of the scheme on “First-come First-served basis” with no state specific allocation. Rs.5,000 crores is allocated under this part.
Last year, the Ministry of Finance had approved ‘Special Assistance to States for Capital Expenditure for 2020-21′ with capital expenditure proposals of Rs. 11,911.79 crores for 27 states. The released amount was Rs. 11,830.29 crores
