NEW DELHI: In a move to boost capital expenditure, finance minister Nirmala Sitharaman will meet the state chief ministers and Finance Ministers on Monday, to monitor release of funds and push key infrastructure departments to ensure timely completion of projects.
“In order to take India to higher growth, there are actions to be taken by the private sector, and there are policy actions to be taken by the Government. Some of the actions lie with the Central government and the central government has been making efforts to do what is needed. But, several of the things which are needed to push India to a sustainable higher growth path lie with states,” Finance Secretary T V Somanathan said.
The FM will push them to increase their capital spending in the second half of the year to support economic growth.
In Budget 2021-22, the finance minister had increased the capital expenditure to Rs 5.54 lakh crore – 26% more than the revised estimate of Rs 4.39 lakh crore for 2020-21.
Against the annual target of Rs 5.54 lakh crore, the government has achieved capital expenditure to the tune of Rs 2.29 lakh crore, 41% of the budget estimate in the first half of the current financial year.
The Centre has incentivised the States to emphasise on capital expenditure.
Under the scheme ‘Special Assistance to States for Capital Expenditure for 2021-22’, the Centre has approved capital projects worth Rs 2,903.80 crore in 8 States, and has also released an amount of Rs 1,393.83 crore to these States.