Boosting State Infrastructure: Centre Releases Rs 1.11 Lakh Crore Loan

The Indian government disbursed Rs 1.11 lakh crore as loans to states from April-January for capital expenditure reforms. The 2024-25 budget increased interest-free state loans to Rs 1.5 lakh crore. The funding aims to foster growth in infrastructure and specific reforms. Beneficiaries include Bihar, Uttar Pradesh, and Madhya Pradesh.

The Centre has released Rs 1.11 lakh crore loan to states for capital expenditure, as announced by Minister of State for Finance Pankaj Chaudhary.

The 2024-25 Budget, presented by Finance Minister Nirmala Sitharaman, raised the allocation for interest-free loans to states for infrastructure spending to Rs 1.5 lakh crore, up from the previous year's Rs 1.10 lakh crore.

In the Lok Sabha, Chaudhary detailed that Rs 1.22 lakh crore in loans have been approved until January 31, with Rs 1.11 lakh crore disbursed. Under this, Rs 55,000 crore is untied and allocated according to states' share of central taxes, while Rs 95,000 crore is designated for citizen-centric reforms and sector-specific projects.

(With inputs from agencies.)