Boost in State Funding: A New Era for Capital Investment

The 15th Finance Commission has provided more funds to states compared to the 14th, thanks to a strong macroeconomic environment and efficient tax collection. Special Assistance to States for Capital Investment (SASCI) has been well-received, with additional funds allocated for capital assets and disaster aftermath reconstruction.

Finance Minister Nirmala Sitharaman announced that funds devolved under the 15th Finance Commission are significantly higher than those under the 14th, buoyed by a robust macroeconomic environment and effective tax collections.

In a pre-budget meeting, Sitharaman highlighted the success of the Special Assistance to States for Capital Investment (SASCI) scheme, first introduced in the 2020-21 budget, garnering positive feedback from states eager to enhance capital asset construction.

The central government has earmarked approximately Rs 30,000 crore as untied funds for SASCI 2024-25, offering states flexibility in applying these funds across sectors to build crucial infrastructure, especially in disaster-affected areas, with additional consideration for severe natural disasters.