The finance minister, Nirmala Sitharaman said that the Central Government to provide ₹75,00 crores at 50-year interest free loan to states in the Interim Budget 2024.
Many growth and development-enabling reforms are needed in the state for realising the vision of Viksit Bharat. A provision of ₹75,000 Crores as a 50-year interest-free loan is proposed this year to support those milestone-linked reforms by the state governments.
The revised estimate of the fiscal deficit is 5.8% of GDP, improving on the budget estimate notwithstanding moderation in the nominal growth estimates.
The finance minister noted that the 50-year interest-free loan scheme to meet the capital expenditure requirements of states will be continued this year with an outlay of ₹1.3 lakh crore. The loan scheme with a tenure of 50 years has played a vital role in stimulating capital spending by states and catalysing the overall economy in the aftermath of the pandemic.
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