Finance Minister Nirmala Sitharman on Monday introduced a ₹12,000 crore interest-free 50-year mortgage to states for spending on capital tasks in a bid to spice up financial system.
Addressing a press convention, she stated, out of the ₹12,000 crore, ₹1,600 crore will probably be given to north-eastern States and ₹900 crore will probably be for Uttrakhand and Himachal Pradesh.
She stated ₹7,500 crore will probably be for the remaining states. ₹2,000 crore will probably be given to states that fulfill pre-stated reforms.
The mortgage should be spent solely on new or ongoing capital tasks, she stated including that states can settle payments of contractors and suppliers however all the quantity must be paid earlier than March 31, 2021.
The mortgage is over and above borrowing ceilings of the states and the reimbursement will probably be one bullet cost after 50 years, she added.
The Finance Minister additionally introduced further capital expenditure of ₹25,000 crore by the central authorities.
This will probably be along with ₹four.13 lakh crore budgeted, she stated, including that the extra cash will probably be for spending on roads, defence infrastructure, water provide and concrete improvement.