CURRENT AFFAIRS

Detailed explanation-1: -Guidelines on the “Scheme of Financial Assistance to States for Capital Expenditure” for 2021-22 issued. The Ministry of Finance, Government of India has decided to provide an additional amount of uptoRs 15, 000 crore to Statesas interest free 50 year loan for spending on capital projects.

Detailed explanation-2: -The Union government has launched a Scheme Special Assistance to States for Capital Investment for 2022-23. Under this Scheme, financial assistance is provided to the States Governments in the form of 50-year interest free loan for capital investment projects.

Detailed explanation-3: -Budget 2023: FM extends 50-year interest free loans to state govt by 1 year. Sitharaman stated that the Centre will continue 50-year interest-free loans to state governments for one more year to aid infrastructure investment with an outlay of ₹1.3 lakh crore.

Detailed explanation-4: -In the 2022-23 Budget, the government introduced the ‘Special Assistance to States for Capital Investment’ scheme with an outlay of ₹1.05 lakh crore. Under the scheme, financial assistance is being provided to state governments in the form of 50-year interest free loan for capital projects.

Detailed explanation-5: -In the budget for 2022-23, the Centre had announced a Rs 1 lakh crore interest-free loan with a tenure of 50 years for states, over and above the normal borrowing, for capex.