Lok Sabha Question No. 208 (UNSTARRED), answered on 2022-07-18
Subject: Special Assistance to States for Capital Expenditure
Ministry: FINANCE
Asked by: Kuruva Gorantla Madhav, Midhun Reddy, Beesetti  Venkata Satyavathi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION No. 208

TO BE ANSWERED ON MONDAY, July 18, 2022/Ashadha 27, 1944 (Saka)

## SPECIAL ASSISTANCE TO STATES FOR CAPITAL EXPENDITURE

## 208. SHRI KURUVA GORANTLA MADHAV: SHRI P.V. MIDHUN REDDY: DR. BEESETTI VENKATA SATYAVATHI:

Will the Minister of FINANCE be pleased to state:

- (a)   the  details  of  funds  allocated  and  released  as  special  assistance  towards  capital expenditure for States in the country during the last two years;
- (b)  whether the Ministry has attached any conditions for release of such funds to the States for capital expenditure and if so, the details thereof;
- (c)   the details of the criteria on which such funds are allocated and divided among different States;
- (d)  whether  the  Ministry  has  received  any  proposal  to  release  special  assistance  towards capital expenditure in the education sector for Andhra Pradesh; and
- (e) if so, whether the Ministry is considering such a proposal and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  The  Union  Government  had  approved  'Scheme  for  Special  Assistance  to  States  for Capital  Expenditure'  with  an  allocation  of  Rs.12,000  crore  in  2020-21.  The  'Scheme  for Special  Assistance  to  States  for  Capital  Expenditure'  was  extended  for  the  financial  year 2021-22 with an allocation of Rs. 15,000 crore. The details of State-wise Special Assistance (Loan) released for capital expenditure under the Scheme is given in Annexure-I.

(b) The list of conditions for release of funds under the Scheme for Special Assistance to States  for  Capital  Expenditure  for  the  financial  years  2020-21  and  2021-22  is  given  in Annexure-II.

- (c) The funds under Part-II of the Scheme for the financial years 2020-21 and 2021-22 were allocated amongst the States in proportion to their share in central taxes as per the award of the 15 th Finance Commission for the year 2020-21 and 2021-22 respectively.
- (d) & (e)  No Sir, the Ministry has not received any proposal relating to Education Sector under  the  Scheme  for  the  year  2020-21  and  2021-22  from  the  Government  of  Andhra Pradesh.

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## ANNEXURE REFERRED IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 208 DUE FOR ANSWER ON 18 TH  JULY, 2022

ANNEXURE-I

## State-wise funds released under the Scheme for Special Assistance to States for Capital Expenditure for the financial years 2020-21 and 2021-22:

(Rs. in crore)

| Sl. No.   | States            |   2020-21 |   2021-22 |
|-----------|-------------------|-----------|-----------|
| 1         | Andhra Pradesh    |    688    |   501.79  |
| 2         | Arunachal Pradesh |    232.97 |   371.19  |
| 3         | Assam             |    450    |   600     |
| 4         | Bihar             |    843    |  1246.5   |
| 5         | Chhattisgarh      |    286    |   423     |
| 6         | Goa               |     97.66 |   111.04  |
| 7         | Gujarat           |    285    |   432     |
| 8         | Haryana           |     91    |   135     |
| 9         | Himachal Pradesh  |    533    |   800     |
| 10        | Jharkhand         |    277    |   246     |
| 11        | Karnataka         |    305    |   451.5   |
| 12        | Kerala            |     81.5  |   238.5   |
| 13        | Madhya Pradesh    |   1320    |  1512.36  |
| 14        | Maharashtra       |    514    |   771.73  |
| 15        | Manipur           |    317.16 |   212.85  |
| 16        | Meghalaya         |    200    |   281.2   |
| 17        | Mizoram           |    200    |   299.99  |
| 18        | Nagaland          |    200    |   300     |
| 19        | Odisha            |    471.5  |   517.12  |
| 20        | Punjab            |    296.5  |   223.5   |
| 21        | Rajasthan         |   1002    |   692.41  |
| 22        | Sikkim            |    200    |   300     |
| 23        | Tamil Nadu        |      0    |   505.5   |
| 24        | Telangana         |    358    |   214.137 |
| 25        | Tripura           |    300    |   118.54  |
| 26        | Uttar Pradesh     |    976    |  1483     |
| 27        | Uttarakhand       |    675    |   263.92  |
| 28        | West Bengal       |    630    |   933     |
|           | Total             |  11830.3  | 14185.8   |

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## ANNEXURE REFERRED IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 208 DUE FOR ANSWER ON 18 TH  JULY, 2022

ANNEXURE-II

## CONDITIONS FOR RELEASE OF FUNDS

- A. The  list  of  conditions  for  release  of  funds  under  the  Scheme  for  Special Assistance to States for Capital Expenditure for the financial years 2020-21:
- i. The amount released by the Union Government  shall be released to the Implementing Agencies of the State Government within 5 working days.
- ii. The amount released shall be utilised by 31.03.2021.
- iii. The State Government shall ensure that there is no duplication in funding of  the projects  approved  under  the  scheme  either  with  the  funds  provided  by  the Government of India or the State Government.
- iv. In  case  of  unavoidable  changes  in  the  specific  project  for  which  funds  are  being released, the State Government shall seek the approval of the Government of India for the change. Funds will not be provided in case of un-approved change.
- v. Expenditure by the State of the funds provided under the scheme, for purposes other than for which the funds were sanctioned, will result in the deduction of the amounts by the Government of India from the devolution of the taxes to the State.
- vi. All  provisions  of  the  guidelines  of  the  scheme  issued  vide  O.M.  No.  44(1)/PFS/2020-21 dated 12.10.2020 shall be applicable in toto and shall be strictly adhered to by the State Government and implementing agencies.
- B. The list of conditions for release of funds under the Scheme for Special Assistance to States for Capital Expenditure for the financial years 2021-22:
- i. The amount released by the Union Government shall be released to the Implementing Agencies of the State Government within 10 working days.
- ii. The amount released shall be utilized by 31.03.2022.
- iii. The  State  Government  shall  ensure  that  there  is  no  duplication  in  funding  of  the projects approved  under  the Scheme  either  with the funds provided by the Government of India or the State Government.
- iv. In  case  of  unavoidable  changes  in  the  specific  project  for  which  funds  are  being released, the State Government shall seek the approval of the Government of India for the change. Funds will not be provided in case of un-approved changes.
- v. Expenditure by the State of the funds provided under the Scheme, for purposes other than for which the funds were sanctioned, will result in the deduction of the amounts by the Government of India from the devolution of the taxes to the State.
- vi. All  provisions  of  the  guidelines  of  the  Scheme  issued  vide  letter  no.  44(1)/PFS/2021-22 (CAPEX) dated 29.04.2021 shall be applicable in toto and shall be strictly adhered to by the State Government and its implementing agencies.

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