The finance ministry had approved Rs 9,879 crore for capital expenditure for 27 states under the Atmanirbhar Bharat package.
Daily Current Affairs Quiz 2020
Key-Points
The scheme was announced by the Finance Minister on 12th October as a part of the Aatmanirbhar Bharat package.
The Scheme is aimed at boosting capital expenditure by the State Governments who are facing a difficult financial environment this year due to the shortfall in tax revenue arising from 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 economic growth.
Therefore, despite the adverse financial position of the Central Government, it was decided to extend a special assistance to the State Governments in respect of capital expenditure in 2020-21.
