3 Northeastern States Meet Target For Capital Expenditure In Q1 Of Current Financial Year

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  • NET Web Desk

Recently, the government has issued a statement to announce the 11 states that has achieved the target set by the Ministry of Finance for the Capital Expenditure (CAPEX) in the first quarter of 2021-22.

Out of these 11 states, three belong to Northeastern India, namely – Meghalaya, Manipur and Nagaland.

As an incentive, these states have been granted permission by the Department of Expenditure to borrow an additional amount of Rs 15,721 crore.

The additional open market borrowing permission granted will be equivalent to 0.25 percent of their Gross State Domestic Product (GSDP).

According to Finance Ministry, additional financial resources thus made available will help the states in pushing their capital expenditure further.

In order to become eligible for incremental borrowing, states were required to achieve at least 15 per cent of the target set for 2021-22 by the end of first quarter of 2021-22, 45 per cent by the end of second quarter, 70 per cent by the end of third quarter and 100 per cent by March 31, 2022, stated the Ministry.

Meanwhile, the 8 other states which have met the target include – Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Rajasthan and Uttarakhand.

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