Finance Ministry Approves Capital Expenditure For North East

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Posted in Featured, Northeast

 

  • NET Web Desk

The Department of Expenditure, Ministry of Finance has approved capital expenditure projects for Northeastern states under the scheme entitled ‘Special Assistance to States for Capital Expenditure for 2021-22’.

The scheme is further divided into three types. (I, II, III).

The 1st part of the scheme is meant for 8 North East States i.e. Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura.

Under this part, Rs. 200 crore has been allocated for each of the 7 North-East States, i.e., Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura. While, Rs. 400 crore has been allocated to Assam.

It is pertinent to note that Ministry of Finance launched the scheme ‘Special Assistance to States for Capital Expenditure for 2021-22’ on April 29, keeping in mind of the higher multiplier effect of capital expenditure, thereby providing the much needed resources to states during the 2nd wave of COVID-19 pandemic.

Besides, second part of the scheme depicts all other States not included in Part-I. An amount of Rs 7,400 crore has been allocated for this part. This amount has been allocated amongst these states in proportion to their share of central taxes as per the award of the 15th Finance Commission for the year 2021-22.

While, third part of the scheme will provide incentives to state Governments for privatization/disinvestment of the State Public Sector Enterprises (SPSEs) and monetization/recycling of assets.

Under this part, States will be provided additional funds under the scheme over and above their allocation under Part-I or Part-II. An amount of Rs. 5,000 crore is allocated for this part of the scheme.

Besides, there will be no state specific allocation and funds will be provided on “First-come First-served basis”.

The scheme will also provide special assistance to state governments in the form of 50-year interest free loan up to an overall sum not exceeding Rs. 15,000 crore during the financial year 2021-22.

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