Capital Investment scheme: Nagaland’s utilisation at 40%
Capital Investment scheme: Nagaland’s utilisation at 40%
Nagaland state could utilise only about forty per cent of interest-free assistance under the central ‘Scheme for Special Assistance to States for Capital Investment' as on January 31, 2025
KOHIMA — Nagaland
state could utilise only about forty per cent of interest-free assistance under
the central ‘Scheme for Special Assistance to States for Capital Investment' as
on January 31, 2025, for the financial year 2024-2025.
In a written reply in the Lok Sabha on Monday, Minister of
State for Finance, Pankaj Chaudhary informed that the Centre had approved INR
542.83 crore for Nagaland as on January 31, 2025, under the Scheme for Special
Assistance to States for Capital Investment 2024-25.
However, the amount released (as of the same date) stood at
INR 462.48. The utilisation reported by Nagaland state was INR 184.64 crore,
which is just about 40% of the total released amount.
Union Finance Minister, Nirmala Sitharaman, in her budget
speech of 2024-2025, proposed an outlay of INR 1.5 lakh crore for 50-year
interest free loans to states for capital expenditure (CapEx) and incentives
for reform.
Out of the total allocation, an amount of INR 55,000 crore
under Part-I of the scheme is untied. The amount has been allocated to the
states in proportion to their share of central taxes and duties as per the
award of the 15th Finance Commission.
The remaining amount of INR 95,000 crore is inter-alia
earmarked for reforms in certain citizen-centric areas and taking up
sector-specific projects like development of iconic tourist centres to global
scale; incentive for scrapping of old vehicles; stimulating industrial growth;
development of national capital region; incentives for land-related reforms by
state governments, construction of working women hostels, urban planning
reforms and incentives for achieving target fixed for capital expenditure.
As for the criteria to grant the assistance to states, the
minister of state replied that the special assistance under the scheme is
released by the Department of Expenditure on fulfilling the conditions
prescribed for release of funds. In case of certain reform-based parts, release
is based on recommendations of the concerned nodal ministry.
Besides the conditions prescribed under various parts of the
scheme, a state is required to meet the certain mandatory conditions, including
full compliance with the official name of all Centrally Sponsored Schemes
(CSSs) and deposit of central share of interest earned in SNA accounts till
31st March, 2024 in the Consolidated Fund of India, it stated.
To enhance capital expenditure, the states are provided
incentives for achieving 10% or higher growth rate in capital expenditure from
their own resources. Moreover, for release of subsequent instalments,
utilisation of 75% of the assistance released earlier is mandatory.
This year, the FM in, her budget speech, proposed support to
states for infrastructure and accordingly, announced an outlay of INR 1.5 lakh
crore for the 50-year interest free loans to states for capital expenditure and
incentives for reforms.
