Centre approves 97% of special assistance funds for states

The Centre has approved nearly 97% of the amount allocated to states under the Special Assistance scheme, which provides interest-free loans for 50 years to states, during the first 10 months of the ongoing fiscal year, two people aware of the matter told Mint.

- Rhik Kundu

The Centre has approved nearly 97% of the amount allocated to states under the Special Assistance scheme, which provides interest-free loans for 50 years to states, during the first 10 months of the ongoing fiscal year, two people aware of the matter told Mint. The amount approved is ₹1.22 trillion.

"Of the ₹1.25 trillion allocated (according to the revised estimates), a third—about ₹55,000 crore—has been earmarked to states (for the ongoing fiscal) based on their share of central taxes and duties," said the first person mentioned above, who didn't want to be named.