Finance ministry OKs Rs 9,800cr for 27 states

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.