In order to give impetus to the economy badly hit due to Corona crisis, the government has announced an additional capital expenditure of Rs 37 thousand crore in the infra sector. The announcements were made by Finance Minister Nirmala Sitharaman and Minister of State for Finance Anurag Thakur. Sitharaman said that Corona has had a very bad effect on the economy. The poor and weaker sections are supported under the Self-Reliant India Package and the emphasis is on ending supply bottlenecks. Despite this, demand still remains low. Keeping this in mind, such packages have been prepared which will not only help in increasing the gross domestic product (GDP) but also will not have any effect on inflation.
Sitharaman said that under the system of increasing demand through capital expenditure, the states will be given a loan of Rs 12 thousand crore for a period of 50 years. Apart from this, the central government will spend an additional budgetary expenditure of Rs 25 thousand crore on various schemes. He said that budgetary provision has been made for capital expenditure of Rs. 4.35 lakh crore in the current financial year, but due to Corona, provision of additional expenditure of Rs. 25 thousand crore is being made which is necessary for road projects, defense, infrastructure, water supply, urban Expenditure is to be spent on development, defense infrastructure and purchase of domestically produced capital equipment.
In this way states will get the amount
The Finance Minister said that a loan of Rs 12 thousand crore will be given to the states, which can be used on new or existing projects. This can also be paid to the contractor or suppliers. This amount will have to be used by 31 March 2021. He said that out of this Rs 1,600 crore has been allocated for the Northeast and a total of Rs 900 crore has been allocated for Himachal Pradesh and Uttarakhand. An allocation of Rs 7,500 crore has been made for the remaining states, which will be disbursed under the Finance Commission’s process of allocation of central funds.
Must meet these standards
States will get 50 percent amount in the initial stage. After the use of the first installment, the remaining amount will be received and the amount that cannot be used can be reallocated. The Finance Minister said that a provision of Rs two thousand crore has been made for the states that have completed at least three of the four reforms undertaken under the Self-Reliant India Financial Loss Package. This loan will have to be repaid after 50 years. This debt will be different from the borrowing limit of the states.
After the meeting of the GST Council, the Finance Minister could not agree on the methods of compensation
.
