Lok Sabha Question No. 2318 (UNSTARRED), answered on 2023-12-18
Subject: Special Assistance to States for Capital Expenditure/Investment
Ministry: FINANCE
Asked by: Raja Amareshwara Naik, Bhola Singh, Vinod Kumar Sonkar, Sukanta Majumdar, Sangeeta Kumari Singh Deo

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION No. 2318

TO BE ANSWERED ON MONDAY, December 18, 2023/Agrahayana 27, 1945 (Saka)

## SPECIAL ASSITANCE TO STATES FOR CAPITAL EXPENDITURE/INVESTMENT

2318.  SHRI RAJA AMARESHWARA NAIK SHRI BHOLA SINGH SHRI VINOD KUMAR SONKAR DR. SUKANTA MAJUMDAR SHRIMATI SANGEETA KUMARI SINGH DEO

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has started a new scheme called Special Assistance to States for Capital Expenditure/Investment;
- (b) if so, the details and the salient features thereof;
- (c) the  details  of  interest  free  loan/assistance  provided  to  the  States  so  far  under  the scheme, State/year-wise, including Karnataka; and
- (d) the other steps taken/being taken by the Government for capital expenditure/Investment in the country?

## ANSWER

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

(a)  and  (b):  The  Scheme  for  Special  Assistance  to  States  for  Capital  Expenditure  was launched in the financial year 2020-21. The Scheme had an allocation of Rs. 12,000 crore. Out of this, an amount of Rs. 2,500 crore was allocated to the North-Eastern States and Hill States under Part-I of the Scheme. Under Part-II of the Scheme, an amount of Rs. 7,500 crore was  allocated  to  the  States  other  than  North-Eastern  and  Hill  States  in  proportion  to  their share of Central Taxes as per the interim award of the 15 th Finance Commission for the year 2020-21. Moreover, an amount of Rs. 2,000 crore was earmarked for Part-III of the Scheme for providing incentives to States for carrying out citizen centric reforms in three out of four areas  viz.  implementation  of  one  nation  one  ration  card  system;  implementation  of  district level and licensing reforms for ease of doing business; reforms for strengthening local bodies; and power sector reforms.

In the financial year 2021-22, the Scheme had an allocation of Rs. 15,000 crore. Under Part-I of the Scheme, an amount of Rs. 2,600 crore was allocated to the North-Eastern States and Hill States. An amount of Rs. 7,400 crore was allocated to the States other than NorthEastern and Hill  States  under  Part-II  of  the  Scheme  in  proportion  to  their  share  of  Central Taxes as per the award of the 15 th Finance Commission.  In addition, an amount of Rs. 5,000 crore was earmarked for providing incentive to States for privatisation/disinvestments of the State Public Sector Enterprises (SPSEs) and monetization/recycling of assets.

The Scheme was continued in 2022-23 with an enhanced allocation of Rs. 1.07 lakh crore. Under Part-I of the Scheme, an amount of Rs. 80,000 crore was allocated to the States in  proportion  to  their  share  of  Central  Taxes  as  per  the  award  of  the  15 th Finance Commission. In addition, incentive amounts of Rs. 27,000 crore were earmarked for seven reform  centric  areas,  viz.,  PM  Gati  Shakti  related  expenditure;  supplemental  funding  for priority  segment  of  PMGSY  including  States'  share  of  PMGSY;  incentive for digitisation, capital  projects  on  optical  fiber  cable;  urban  reforms;  disinvestment  of  SPSE's  &  asset monetization; and scrapping of old vehicles.

The  Scheme  has  been  further  expanded  and  continued  as  'Scheme  for  Special Assistance to States for Capital Investment 2023-24' with allocation Rs. 1,30,000 crore. This includes an amount of Rs. 1 lakh crore under Part-I of the Scheme which has been allocated to States in proportion to their share of Central Taxes as per the award of the 15 th Finance Commission and incentive amounts of Rs. 30,000 crore for reform centric and sector specific areas, viz, scrapping old vehicles, urban planning reforms, financing reforms in urban local bodies to make them creditworthy for municipal bonds, housing for police personnel above or as part of police stations, unity malls, children and adolescent' library and digital infrastructure.

(c):  The  details  of  Special  Assistance  (Loan)  released  to  States  including  the  State  of Karnataka under the Scheme for Special Assistance to States for Capital Expenditure/Investment  between  financial  years 2020-21  and  2023-24  is  provided  in Annexure.

(d):  The  Special  Assistance  to  States  for  Capital  Expenditure/Investment  are  aimed  at boosting capital expenditure by the States. Further, the scheme guidelines on the Scheme for Special  Assistance  to  States  for  Capital  Investment  2023-24,  inter-alia,  stipulate  target  for capital  expenditure  for  each  State  for  the  financial  year  2023-24  for  availing  the  2 nd installment under Part-I (Untied) of the Scheme for 2023-24.

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## ANNEXURE REFERRED IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2318 DUE FOR ANSWER ON 18 th  DECEMBER, 2023

## Special Assistance (loan) released under the Scheme for Special Assistance to States for Capital Expenditure/Investment

(Rs. in crore)

| Sl. No.   | State             |   2020-21 |   2021-22 |   2022-23 |   2023-24 (As on 13.12.2023) |
|-----------|-------------------|-----------|-----------|-----------|------------------------------|
| 1         | Andhra Pradesh*   |    688    |    501.79 |   6105.56 |                         0    |
| 2         | Arunachal Pradesh |    232.97 |    371.19 |   1564.1  |                       992.49 |
| 3         | Assam             |    450    |    600    |   4300.14 |                      2841.21 |
| 4         | Bihar             |    843    |   1246.5  |   8455.85 |                      6135.54 |
| 5         | Chhattisgarh      |    286    |    423    |   2941.97 |                      2044.78 |
| 6         | Goa               |     97.66 |    111.04 |    572.75 |                       332.35 |
| 7         | Gujarat           |    285    |    432    |   4045.82 |                      2336.62 |
| 8         | Haryana           |     91    |    135    |   1267    |                       756.75 |
| 9         | Himachal Pradesh  |    533    |    800    |    650.8  |                       644.36 |
| 10        | Jharkhand         |    277    |    246    |   2964.32 |                      1693.19 |
| 11        | Karnataka         |    305    |    451.5  |   3399.35 |                      2538.04 |
| 12        | Kerala*           |     81.5  |    238.5  |   1902.74 |                         0    |
| 13        | Madhya Pradesh    |   1320    |   1512.36 |   7360.2  |                      5325.6  |
| 14        | Maharashtra       |    514    |    771.73 |   6744.16 |                      3457.61 |
| 15        | Manipur*          |    317.16 |    212.85 |    467.22 |                         0    |
| 16        | Meghalaya         |    200    |    281.2  |   1049.02 |                       555.43 |
| 17        | Mizoram           |    200    |    299.99 |    297.5  |                       487.55 |
| 18        | Nagaland          |    200    |    300    |    504.16 |                       462.3  |
| 19        | Odisha            |    471.5  |    517.12 |     75    |                      3039.77 |
| 20        | Punjab*           |    296.5  |    223.5  |    798.22 |                         0    |
| 21        | Rajasthan         |   1002    |    692.41 |   5595.64 |                      3987.91 |
| 22        | Sikkim            |    200    |    300    |    551.36 |                       271.66 |
| 23        | Tamil Nadu        |      0    |    505.5  |   4011.27 |                      2643.65 |
| 24        | Telangana         |    358    |    214.14 |   2500.98 |                      1241.84 |
| 25        | Tripura           |    300    |    118.54 |    349.79 |                       258.77 |
| 26        | Uttar Pradesh     |    976    |   1483    |   7940.5  |                     12458.4  |
| 27        | Uttarakhand       |    675    |    263.92 |   1124.01 |                       785.78 |
| 28        | West Bengal       |    630    |    933    |   3655.92 |                      5015.58 |
|           | Total             |  11830.3  |  14185.8  |  81195.4  |                     60307.2  |

*: The State has not met the eligibility criteria prescribed under the Scheme for 2023-24.

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