UP tops states' access to ₹1.3 tn capital assistance

More than 95% of the budgeted ₹1.3 tn have been sanctioned, while ₹60,307.19 cr was released to states by 13 Dec

- Rajeev Jayaswal

Uttar Pradesh emerged as the largest recipient of the ₹1.3 trillion special assistance to states for capital expenditure in the current fiscal year.

According to official data, as of 13 December, of the ₹98,156.9 crore approved under the scheme UP received ₹18,936 crore based on the eligibility criteria, followed by Bihar (₹9,932.25 crore), Madhya Pradesh (₹8,134 crore, and West Bengal (₹7,523 crore).

The scheme offers 50-year, interest-free loans to states in addition to their usual annual borrowing limits. The scheme has twin objectives, to provide growth impetus through public expenditure besides nudging states to undertake citizen-centric reforms.

A few states, such as Kerala and Andhra Pradesh, did not meet the eligibility criteria to avail the benefits.

More than 95% of the budgeted ₹1.3 trillion have been sanctioned, while ₹60,307.19 crore was released to states by 13 December, data showed.