11 states meet Q1 capex target, get to mobilise Rs 15,721 crore
In the first quarter of the current fiscal year 2021-22, a total of 11 states met the central government’s capital expenditure objective.
According to a statement made by the Ministry of Finance on Tuesday, the states include Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Manipur, Meghalaya, Nagaland, Rajasthan, and Uttarakhand.
The additional open market borrowing authority provided is equal to 0.25 percent of their GSP (GSDP). According to the Finance Ministry, the other financial resources made available will assist states in increasing their capital expenditure.
The Department of Spending set the additional capital expenditure objective for each state to qualify for this incremental borrowing.
States that accomplish actual capital expenditure of at least 45 percent of the target by September 30, 2021, or 70 percent of the target by December 31, 2021, will be eligible for the capital expenditure-linked borrowing ceiling of 0.5 percent GSDP.