Finance Ministry approves 9,880 crore for 27 states barring Tamil Nadu under Atmanirbhar Bharat

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The Finance Ministry has authorized capital initiatives valued at Rs 9,880 crore for 27 states below the scheme for particular help to states for capital expenditure (Capex) below the Atmanirbhar Bharat Package as of December 8.

All states barring Tamil Nadu have availed of the scheme below which the Centre launched Rs 4,940 crore for initiatives starting from the well being to the training sector, the ministry stated in an announcement, on Saturday.

“The scheme is aimed at boosting capital expenditure by the State Governments who are facing a difficult financial environment this year due to the shortfall in tax revenue arising from the COVID-19 pandemic,” the assertion stated.

State-wise allocation of loans underneath the scheme has been made following the 15th Finance Commission’s (FC) tax devolution method as per its interim report for FY21 submitted in November final year.

Uttar Pradesh obtained the very best quantity of Rs 750 crore from the primary installment underneath the scheme, adopted by Rs 421 Crore to Bihar and Madhya Pradesh’s Rs 330 crore, in response to the assertion.

In October, Finance Minister Nirmala Sitharaman had introduced the second tranche of the federal government’s stimulus package deal which concerned Rs 12,000 crore price of interest-free 50-year loans to the states for spending on capital tasks.

Further, the federal government launched grants-in assist to the states amounting to Rs 1.18 lakh crore as of December 3, primarily based on the FC’s really useful Rs 1.99 lakh crore for FY21, in its interim report, the finance ministry stated in a replace by way of Twitter on Saturday.

The Centre additionally launched Rs 2,200 crore as the primary installment of grants-in assist for enhancing the air high quality in city agglomerations, as a part of the FC’s suggestions, the ministry stated.

In addition to this, the federal government additionally gave its approval for 135 housing tasks amounting to investments price Rs 13,191 crore as of December 1, underneath the Special Window for Affordable and Mid-Income Housing scheme, it stated.