The Ministry of Finance has approved the capital investment proposals for 16 states in India, amounting to Rs 56,415 crore for the current financial year. The funds have been provided under the ‘Special Assistance to States for Capital Investment 2023-24’ scheme, which was introduced in the Union Budget 2023-24. The aim is to boost capital spending by states and provide special assistance in the form of a 50-year interest-free loan to the overall sum of Rs 1.3 lakh crore during the financial year.
The Department of Expenditure has approved capital investment projects in various sectors, including health, education, irrigation, water supply, power, roads, bridges, and railways. Additionally, funds have been allocated to enhance the pace of projects for Jal Jeevan Mission and Pradhan Mantri Gram Sadak Yojana.
The ‘Special Assistance to States’ scheme was executed by the finance ministry in the last financial year as well, providing a timely boost to capital spending by states. A capital investment of Rs 95,147.19 crore was approved, and Rs 81,195.35 crore was released to the states under the scheme.
The news has been received positively as it is expected to attract more investments in the country and stimulate overall economic growth. The move will further strengthen the development of various sectors and help improve the lives of people.
This scheme will not only help in capital spending but also enable the states to reduce their debts and interest liabilities. It will benefit the states by providing long-term, low-cost funds for infrastructure development, thereby enhancing competitiveness and improving socio-economic indicators.
Overall, the allocation of Rs 56,415 crore for various projects by the Ministry of Finance under the ‘Special Assistance to States for Capital Investment 2023-24’ scheme is expected to have a significant impact on the country’s economic growth and development. This initiative is applauded by the people and is considered a positive step towards fostering growth and prosperity.
