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Scheme for Special Assistance to States for Capital Expenditure

Ministry of Finance 27 States avail benefits of the “Scheme for Special Assistance to States for Capital Expenditure” Capital Expenditure Pr...

Ministry of Finance

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

Capital Expenditure Projects worth Rs.9,879.61 crore approved

An amount of Rs.4,939.81 crore released as first instalment

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.

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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. 

Scheme for Special Assistance

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.

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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

344.00

344.00

172.00

2

Arunachal Pradesh

200.00

200.00

100.00

3

Assam

450.00

450.00

225.00

4

Bihar

843.00

843.00

421.50

5

Chhattisgarh

286.00

286.00

143.00

6

Goa

32.00

32.00

16.00

7

Gujarat

285.00

285.00

142.50

8

Haryana

91.00

91.00

45.50

9

Himachal Pradesh

450.00

450.00

225.00

10

Jharkhand

277.00

277.00

138.50

11

Karnataka

305.00

305.00

152.50

12

Kerala

163.00

163.00

81.50

13

Madhya Pradesh

660.00

660.00

330.00

14

Maharashtra

514.00

514.00

257.00

15

Manipur

200.00

200.00

100.00

16

Meghalaya

200.00

200.00

100.00

17

Mizoram

200.00

200.00

100.00

18

Nagaland

200.00

200.00

100.00

19

Odisha

388.00

388.00

194.00

20

Punjab

150.00

146.50

73.25

21

Rajasthan

501.00

501.00

250.50

22

Sikkim

200.00

200.00

100.00

23

Tamil Nadu

351.00

0.00

0.00

24

Telangana

179.00

179.00

89.50

25

Tripura

200.00

200.00

100.00

26

Uttar Pradesh

1501.00

1501.00

750.50

27

Uttarakhand

450.00

434.11

217.06

28

West Bengal

630.00

630.00

315.00

Total

10250.00

9879.61

4939.81

Source : PIB

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Indian Govt Scheme - Sarkari Yojna - सरकारी योजना: Scheme for Special Assistance to States for Capital Expenditure
Scheme for Special Assistance to States for Capital Expenditure
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