Finance Ministry has released an amount of 11 thousand 830 crore rupees to States under the scheme – Special Assistance to States for Capital Expenditure. The scheme was announced on 12th October last year as part of Aatma Nirbhar Bharat package. It is aimed at boosting capital expenditure by the State Governments who were facing difficult financial environment due to a 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.
 
The Ministry said, the scheme has got very warm response from the State Governments. Capital expenditure proposals of 11 thousand 912 crore rupees of 27 States were approved under the scheme by the Department of Expenditure. The capital expenditure projects have been approved in diverse sectors of economy like, Health, Rural Development, Water Supply, Irrigation, Power, Transport, Education and Urban Development.