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    Vikshita Vitthal Gujaran in News

    18-Nov-2022 02:09 AM


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    Centre sanctions ₹ 60,000 cr long-term capex funds to states

    The central government has sanctioned ₹60,000 crore of long-term capital expenditure funds to states this fiscal, making a strong beginning to the scheme announced earlier this year to build roads, ports, bridges, airports and highways across the country.
    Uttar Pradesh, West Bengal, Madhya Pradesh and Bihar have emerged as the biggest gainers from the infrastructure financing scheme announced in the FY23 budget, a person informed about the scheme’s operation said.
    An email sent to a finance ministry spokesperson on Wednesday seeking comments for the story remained unanswered at the time of publishing.
    He added that there is a case for the Centre to consider raising this long-term capex funds for states in next year’s budget, given its use and demand.
    The amount sanctioned so far shows a fourfold jump from the allocation made in the first year of the scheme— ₹15,000 crore in FY22, indicating it is being well received by states.
    According to an analysis by Bank of Baroda, states have a tendency to go slow on capex in the initial months and accelerate subsequently when a clearer picture of their fiscal balances is known.

    Source - MINT