15 Nov 2025, Sat

Finance Minister Nirmala Sitharaman in Rajya Sabha Says Capital Expenditure of States 146 Lakh Crose Interest Free Loan | Center’s gift to the state, additional help 1.46 crore released, Nirmala said

Union Finance Minister Nirmala Sitharaman said that the government has not made any shortage in capital expenses. He further said that for this, the Central Government has released Rs 1.46 crore to the states, which is more than the budget allocated in March.

The Union Minister said in his statement in Parliament that it was requested to continue the schemes running on behalf of the state governments, so the Center keeps increasing for the allocation of that scheme.

He said that such requests met Nagaland, Manipur, Rajasthan and Andhra Pradesh during last year i.e. 2024-25. The Finance Minister said that capital expenses have multidimensional effects and economy’s capacity increases, which is why the scheme was included in every financial year.

The Union Finance Minister said that under the Special Assistance Scheme, about Rs 3,27,558 crore is to be issued to the states in this order. A total of Rs 1,53,673 crore was fixed for the scheme in financial year 2025.

Responding to the questions of Congress leader P. Chidambaram, Nirmala Sitharaman said that the Center has not reduced any kind of capital expenses and the capital expenditure in the financial year 2025 was Rs 11.11 lakh crore, while it increased to Rs 11.21 lakh crore in FY 2026.

He said that the plan for special assistance to the states as an interest free loan of 50 years for capital expenditure was launched in October 2020. However, during the Corona epidemic, this scheme started in a difficult fiscal and in a period of reduction in tax revenue.

Also read: RBI’s big step before monetary policy to give relief to banks, gift of 80 thousand crore cash

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