22-12-2020 | 12:56 PM
Scheme for Special Assistance to States for Capital Expenditure
The Scheme for Special Assistance for Capital Expenditure States is reportedly facing a tax deficit as a result of the COVID-19 pandemic.
The goal of the programme is to improve the capital spending of state governments. Under the scheme, the Ministry of Finance has so far accepted plans for capital spending worth Rs 9.878.61 crores.
About Scheme:
Under the scheme, capital investment schemes such as water supply, health, rural development, irrigation, education and transport have been authorised. The system is split into three parts, based on citizen-centric state changes, the North East and other regions.
To date, all States, except Tamil Nadu, have benefited from the special assistance programme to States for capital expenditure.
The scheme would improve the state's capital spending. Capital spending increases the potential productive capacity of the economy and aims to accelerate the country's economic growth. The scheme was initiated in October 2020 under Atma Nirbhar Bharat Abhiyan.
Key Features:
There are three sections of the scheme. The North-East Region of the system includes all seven North-Eastern Nations. Approximately Rs 200 crores have been allocated to this section of the system.
Part II of the scheme covers all other States which are not bound by Part I of the scheme. Rs 7,500 crores were allotted to Section II of the scheme.
Part III of the scheme allows for citizen-centred reforms in the Member States. Approximately 2,000 crores of ropes have been dedicated to this section of the system. Under this section of the scheme, the sum will only be applicable to States which carry out three of the four reforms stated by the Ministry of Finance.
