27 States avail benefits of the “Scheme for Special Assistance to States for Capital Expenditure”

27 States avail benefits of the “Scheme for Special Assistance to States for Capital Expenditure”

Ministry of Finance

PRESS RELEASE

12th DEC 2020

All the States except Tamil Nadu have availed benefits of the newly announced scheme for “Special Assistance to States for Capital Expenditure”. The scheme was announced by the Finance Minister on 12th October, 2020 as a part of the AatmaNirbhar Bharat package.

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

The Scheme has got very warm response from the State Governments. So far capital expenditure proposals of Rs. 9,879.61 crore of 27 States have been approved by the Ministry of Finance. An amount of Rs. 4,939.81 crore has already been released to the States as the first instalment under the scheme. State-wise allocation, approval granted and funds released is attached.

The capital expenditure projects have been approved in diverse sectors of economy like, Health, Rural Development, Water Supply, Irrigation, Power, Transport, Education, Urban Development.

The Scheme has three parts. Part –I of the scheme covers the north-eastern region. Under this part, Rs.200 crores is allocated to 7 north-eastern States (Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura). In view of higher population and geographical area, Assam has been allocated Rs.450 crores under the scheme.

Part-II of the Scheme is, for all other States not included in Part-I.An amount of Rs.7,500 crores is earmarked for this part. This amount has been allocated amongst these States in proportion to their share of central tax as per the interim award of the 15th Finance Commission for the year 2020-21.

Part-III of the Scheme is aimed at pushing various citizen-centric reforms in the States. Under this Part, an amount of Rs.2000 crores is earmarked. This amount will be available only to those States who carry out at least 3 out of the 4 reforms specified by the Ministry of Finance in its letter dated 17th May, 2020 regarding reform linked additional borrowing permissions. The 4 reforms are – One Nation One Ration Card, Ease of doing Business Reform, Urban Local Body/ Utility Reform and Power Sector Reform.

Scheme for Special Assistance to States for Capital Expenditure
(Rs. in crore)
S.No	State	Amount Allocated	Amount Approved	Amount Released
1	Andhra Pradesh	344	344	172
2	Arunachal Pradesh	200	200	100
3	Assam	450	450	225
4	Bihar	843	843	421.5
5	Chhattisgarh	286	286	143
6	Goa	32	32	16
7	Gujarat	285	285	142.5
8	Haryana	91	91	45.5
9	Himachal Pradesh	450	450	225
10	Jharkhand	277	277	138.5
11	Karnataka	305	305	152.5
12	Kerala	163	163	81.5
13	Madhya Pradesh	660	660	330
14	Maharashtra	514	514	257
15	Manipur	200	200	100
16	Meghalaya	200	200	100
17	Mizoram	200	200	100
18	Nagaland	200	200	100
19	Odisha	388	388	194
20	Punjab	150	146.5	73.25
21	Rajasthan	501	501	250.5
22	Sikkim	200	200	100
23	Tamil Nadu	351	0	0
24	Telangana	179	179	89.5
25	Tripura	200	200	100
26	Uttar Pradesh	1501	1501	750.5
27	Uttarakhand	450	434.11	217.06
28	West Bengal	630	630	315
	Total	10250	9879.61	4939.81

Tags : Finance

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