Madhya Pradesh and Andhra Pradesh have become the first group of states to complete three out of the four citizen-centric reforms stipulated by the Ministry of Finance. The two states have completed the One Nation, One Ration Card Reforms, Ease of Doing Business Reforms and Urban Local Bodies Reforms.
Consequent upon completion of reforms in the three sectors, the Finance Ministry has decided to provide additional financial assistance amounting to 1,004 crore rupees to these states under the newly launched Scheme of Special Assistance to States for Capital Expenditure.
Andhra Pradesh will get an additional amount of 344 crore rupees while Madhya Pradesh has become entitled to receive 660 crore rupees. This scheme was announced by the Central government in October last year as part of Atmanirbhar Bharat package. The additional financial assistance for the capital expenditure is in addition to the permission of 14,694 crore rupees issued to the two states for extra borrowings for completing the reforms.
The Special Assistance to States for Capital Expenditure scheme is aimed at boosting capital expenditure of the State Governments who are facing difficulty due to the shortfall in tax revenue due to COVID-19 pandemic. So far, capital expenditure proposals of 9,880 crore rupees of 27 States have been approved by the Ministry of Finance. An amount of 4,940 crore rupees has already been released to the States as the first instalment under the Scheme.
The capital expenditure projects have been approved in diverse sectors of economy like Health, Rural Development, Water Supply, Irrigation, Power, Transport, Education and Urban Development.