Telangana gets additional Rs.179 crore for
capital expenditure ; Additional amount is given as incentive for
completing reforms in three out of four citizen-centric areas
Telangana has become the 2nd State after Madhya Pradesh to complete reforms in 3 out of 4 stipulated areas
The
Department of Expenditure, Ministry of Finance has approvedcapital
projects of an additional amount of Rs.179 crore in Telangana. This is
in addition to the capital projects of Rs.179 crore approved in the
State earlier. Additional projects have been approved in the State as
an incentive for undertaking reforms in three out of the four stipulated
citizen-centric areas, i.e. One Nation One Ration Card, Ease of Doing
Business, and Urban Local Bodies Reforms. The projects have been
approved under the newly launched scheme of “Financial Assistance to
States for capital projects”.
Telangana
has become the second State to get additional funds under the Scheme.
Earlier, Madhya Pradesh was sanctioned additional capital projects of
Rs. 660 crore as an incentive for undertaking reforms in three out of
four stipulated areas. The citizen-centric areas identified by the
Government of India for undertaking reforms by the States are One
NationOne Ration Card Reforms, Ease of Doing Business Reforms, Power
Sector Reforms and Urban Local Bodies Reforms.
Out of the additional approved amount of Rs.179 crore, an amount of Rs.89.50 crore has been released to the State as 1st
instalment. All the capital projects identified by the State
Government of Telangana to be taken up from the additional funds are in
the road sector.
The scheme of “Special Assistance to States for capital expenditure was announced by the Finance Minister on 12th October, 2020 as part of Aatma Nirbhar Bharat package.
The Schemeis 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.10835.50 crore of 27 States have
been approved by the Ministry of Finance. An amount of Rs.5417.70
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. Tamil Nadu has not availed the benefit of the
scheme.
The capital expenditure projects have been approved in diverse sectors
of economy like, Health, Rural Development, Water Supply, Roads and
Bridges, Irrigation, Power, Transport, Education, Urban Development.
The Scheme has three parts. Part–I of the scheme covers the
north-eastern and hill States. Under this part, Rs.200 crore is
allocated to each of the 7 north-eastern States (Arunachal Pradesh,
Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura) and Rs.450
croreis allocated to each of the hill States (Himachal Pradesh and
Uttarakhand). In view of higher population and geographical area, the
State of Assam has been provided enhanced allocationof Rs.450 crore
under the scheme.
Part-II of the Scheme is, for all other States not included in
Part-I.An amount of Rs.7,500 crore 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 crore is
earmarked. This amount is available only to those States who carry out
by 15th February, 2021, 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.
Scheme for Special Assistance to States for Capital Expenditure
(Rs. In crore)
S.No.
|
State
|
Amount Allocated
|
Amount Approved
|
Amount Released
|
1
|
Andhra Pradesh
|
688.00
|
344.00
|
172.00
|
2
|
Arunachal Pradesh
|
233.66
|
233.66
|
116.83
|
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
|
65.66
|
65.66
|
32.83
|
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
|
1320.00
|
1320.00
|
660.00
|
14
|
Maharashtra
|
514.00
|
514.00
|
257.00
|
15
|
Manipur
|
233.66
|
233.66
|
116.83
|
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
|
0.00
|
0.00
|
0.00
|
24
|
Telangana
|
358.00
|
358.00
|
179.00
|
25
|
Tripura
|
200.00
|
200.00
|
100.00
|
26
|
Uttar Pradesh
|
1501.00
|
1501.00
|
750.50
|
27
|
Uttarakhand
|
450.00
|
450.00
|
225.00
|
28
|
West Bengal
|
630.00
|
630.00
|
315.00
|
|
Total
|
11183.0
|
10835.5
|
5417.7
|
SOURCE ; PIB NEWS
(With input from news agency language)
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