Budget 2024 Live: FM Sitharaman Extends 50-Year Interest-Free Loans for States Under Gati Shakti

Finance Minister Nirmala Sitharaman, in her Budget speech on February 1, announced the extension of the scheme providing 50-year interest-free loans for capital expenditure to state governments. The move is part of the government’s Gati Shakti master plan, aimed at comprehensive infrastructure development.

“The scheme of a fifty-year interest-free loan for capital expenditure to states will be continued this year with a total outlay of Rs 1.3 lakh crore,” Sitharaman stated during her interim Budget presentation.


While the specific allocation for the Gati Shakti master plan was not detailed in the budget speech, the government has allocated a substantial Rs 11.1 lakh crore as capital expenditure for the upcoming fiscal year. This marks an 11.1 percent increase compared to the 2023-24 budget estimate of Rs 10 lakh crore.