New Delhi: The Government of India has released Rs4103.39 crore to the State Government in four years under the Scheme for Special Assistance to States for Capital Investment, Union Minister of State for Finance, Pankaj Chaudhary told Lok Sabha today.
In a written statement to the Lower House of the Parliament, Shri Chaudhary said the Special Assistance to States for Capital Expenditure/Investment is aimed at boosting capital expenditure by the States.
The Ministry of Finance had launched the scheme for financial assistance to States for capital investment/expenditure in 2020-21 in the wake of COVID-19 pandemic which gave a very timely boost to capital spending by States.
The Centre has released Rs 471.50 crore to Odisha under the scheme in 2020-21 while Rs 517.12 crore released in the financial year 2021-22 and Rs 75 crore during last financial year.
However, the amount has been increased substantially to Rs 3039.77 crore during the current financial year 2023-24, he said.
The State has received such a high amount of fund from the Centre for taking reform measures set by the Finance Ministry, officials said.
The Special Assistance (loan) earmarked for reforms in citizen centric areas under the Scheme is released by the Department of Expenditure on the basis of recommendations of the nodal Ministries/Departments and on the compliance of reform conditions by States. Besides the conditions prescribed under various Parts of the Scheme, a State is required to meet certain mandatory conditions.
The conditions include full compliance with the official name of all Centrally Sponsored Schemes (CSSs), integration of State treasuries with PFMS and deposit of central share of interest earned in SNA accounts till 31st March, 2023 in the Consolidated Fund of India and submission of a certificate to this effect in the prescribed format, signed by the Finance Secretary of the State Government.
The MoS further said that an amount of Rs1 lakh crore earmarked for Part-I (Untied) of the Scheme has been allocated to the States in proportion to their share of central taxes and duties as per the award of the 15th Finance Commission.
An additional amount of Rs. 30,000 crore is earmarked for reforms in certain citizen centric areas, like scrapping of old vehicles; urban planning reforms; financing reforms in Urban Local Bodies to make them creditworthy for municipal bonds; housing for police personnel above or as part of police stations; unity malls; children and adolescents’ library and digital infrastructure; and State share of capital expenditure of certain centrally sponsored schemes, he informed.
