Centre Launches Scheme For Special Assistance To States For Capital Investment For 2022-23
Economy25 Sep 2022| A-AA+
In News
The Government of India has launched a Scheme Special Assistance to States for Capital Investment for 2022-23.
Status of State Finances
States like Punjab, Rajasthan, Kerala, West Bengal, Bihar, Andhra Pradesh, etc. had the highest debt burden in 2020-21.
Revenue expenditure of these states constitutes 80-90% of the total expenses and therefore they have poor capital spending.
Andhra Pradesh, Bihar, Rajasthan and Punjab exceeded both debt and fiscal deficit targets for 2020-21 set by the 15th Finance Commission.
Capital investment is the money spent on acquiring assets while revenue expenditure indicates daily operations expenses like salaries and pensions.
Under this Scheme, financial assistance is provided to the States Governments in the form of 50-year interest free loan for capital investment projects.
