New Delhi: The Union government has released Rs 194 crore to Odisha out of Rs 388 crore sanctioned under ‘scheme for special assistance to states for capital expenditure’ in view of Covid-19 pandemic.
According to the Ministry of Finance, the scheme is aimed at assisting the state governments which have faced shortfall in tax revenue due to the Covid-19 pandemic.
“Capital expenditure has a higher multiplier effect, enhancing the future productive capacity of the economy, and results in a higher rate of economy growth. Therefore, despite the adverse financial position of the Union government, it was decided to extend special assistance to state governments in respect of capital expenditure, in financial year 2020-21,” the Finance Ministry said.
It is further said that the scheme has received very good response from the state governments. “Capital expenditure proposals of Rs 9,879.61 crore from 27 states have so far been approved by the Ministry of Finance. A total of Rs 4,939.81 crore has been released to the states as the first tranche of assistance under the scheme,” the ministry said.
Capital expenditure projects have been approved in diverse sectors of economy like, health, rural development, water supply, irrigation, power, transport, education, urban development, the ministry added.