Home Finance State Boosts CAPEX Spending

State Boosts CAPEX Spending

Bhubaneswar: In order to boost permanent asset creation and spur capital spending in the State, the Odisha Government has sanctioned Rs.374 Crore for taking up various infrastructure projects.

Vishal Dev, Principal Secretary Finance, who is regularly monitoring spending on developmental programs, is harping on more Capital Expenditure (CAPEX).

Capital Expenditure (CAPEX) is the money spent by the State Government on the development of roads, building, drinking water, water resources, health facilities, education, etc.

It also includes the expenditure incurred on acquiring fixed assets like land and investment by the Government that gives dividend in future. 

Accordingly, Department of Finance has recently cleared several projects for three departments including Works, Panchayati Raj & Drinking Water and Water Resources.

As many as 12 infrastructure projects of Works, Panchayati Raj and Drinking Water and Water Resources would be funded from the Central Scheme.

Under the Scheme, the State Government has given Rs 180 crore for two road projects of Works Department, Rs 127.68 crore for four drinking water projects of Panchayati Raj Department and Rs 66.32 crore for two Water Resources Department projects.

As the State Government has received the first installment of Rs 143.12 crore under Central scheme Special Assistance to States for Capital Expenditure for the year 2021-22, such projects have been sanctioned to boost CAPEX Spending, said sources.

According to sources, the Union Government has approved a sum of Rs 374 crore to the State of Odisha under the scheme ‘Special Assistance to States for Capital Expenditure for 2021-22’.

As the State Government had not utilized an amount of Rs 43.88 crore during 2O2O-21, the un-utilized amount has been adjusted against the 1st installment of Rs 187 crore under the scheme for the year 2021-22.

Thus, a total sum of Rs 143.12 crore as the first installment has been released in the form of a long-term interest-free loan to the State Government under the Scheme towards 50 per cent of the approved project cost.

Balance 50 Percent, i.e Rs 187 crore would be released by Government of India after utilization of the funds released in first phase and submission of UC to that effect, the sources said.

The State Government has also made necessary budgetary provision for execution of the big infra projects.

In the meantime Department of Finance has requested the Administrative Departments to take necessary steps for the implementation of the projects to be funded under the scheme expeditiously.

“The entire Capital expenditure for Rs 374 crore is to be incurred during the current financial year and the identified projects are to be completed before March, 2022. Hence, the Administrative Departments are requested to start spending out of the above provision in 2021-22 (BE) and submit Utilization Certificate (UC) for at least 50 Percent of the amount by end of December, 2021 to Finance Department for onward transmission of the UC to Ministry of Finance for release of the second phase installment of funding,” Department of Finance has urged the Departments, said sources.