With a little more than a quarter to go in financial year 2023-24, the Centre has released less than half of the ₹1.3 lakh crore allocated for special assistance loans to States to undertake capital expenditure.
Four States — Kerala, Andhra Pradesh, Punjab and Manipur — have not been given any funds as they have failed to meet the eligibility criteria specified for this year under the scheme, which provides 50-year interest-free loans for State capex and was first launched in the midst of the COVID-19 pandemic in 2020-21.
While the scheme had begun with an allocation of ₹12,000 crore, this was ramped up to ₹15,000 crore in 2021-22. States had availed almost the entire scheme allocations in those two years. In 2022-23, when the outlay was raised sharply to ₹1.07 lakh crore, States availed a little over ₹81,000 crore.
By December 13, the Centre had released ₹60,307.19 crore to States as Special Assistance (loan) for Capital Expenditure, Minister of State for Finance Pankaj Chaudhary informed Lok Sabha in response to a query.
Before their disqualification from the scheme this year, Andhra Pradesh had availed ₹7,285 crore under the scheme, while Kerala and Punjab had utilised ₹2,222.7 crore and ₹1,318.2 crore, respectively, followed by Manipur at almost ₹1,000 crore. The States that have received the highest amount of funds as capex loans this year are Uttar Pradesh (₹12,458.4 crore), Bihar (₹6,135.5 crore) and Madhya Pradesh (₹5,325.6 crore).
“The Special Assistance to States for Capital Expenditure/ Investment are aimed at boosting capital expenditure by the States. Further, the scheme guidelines for 2023-24, inter-alia, stipulate target for capital expenditure for each State for the financial year 2023-24 for availing the second instalment under Part-I (Untied) of the Scheme for 2023-24,” Mr. Chaudhary said.