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.

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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.