States' liabilities under the Center Center to surpass £ 3.5 TN

Copyright © HT Digital Streams Limit all rights reserved. The obligations of the economy under the center’s 50-year interest-free loan scheme to exceed £ 3.5 trillion by FY25-end Rhik Kundu 2 min Read 27 Apr 2025, 05:30 AMT official data available from the Ministry of Finance showed that between the FY21 and January FY25, the total outstanding labeled labeled under the SASCI scheme 3.28. (IStockphoto) Summary established in 2020-21 played the interest-free loan with a 50-year tenure in the stimulation of capital spending by states and the total economy that catalyzed the New Delhi: the total outstanding liabilities of states under a special central government’s low-cost loan scheme are estimated to be with the ment, told. The special assistance to States for Capital Investment (SASCI) is a 50-year interest-free loan program that uses the center to support capital expenditure through India’s states. Read also | Will the global economy stop? It is best to be for it anyway. The development follows the center’s pressure on higher state capitals after the economic growth reduced to 5.4% in September – the worst rate in almost two years – is submissive by government expenses and falling consumption. “The pursuit of capital investment has probably led states to have more than £ 3.5 trillion interest-free obligations under the center’s 50-year interest-free Capeex loan scheme between FY21 and FY25,” the first person above mentioned on the condition of anonymity. Read also | The math behind Trump’s three-arrow plan to reduce deficiency-what is the third step? “A significant part of this spending by states is aimed at stimulating economic growth (through infrared expenses), after subdued consumption and lower public expenses in the post-pandemic period and after the election-affected quarters of FY25,” the person mentioned above. The interest-free loan with a 50-year tenure, launched in 2020-21, played an important role in catalyzing capital expenditure by catalyzing states and the total economy in the aftermath of the pandemic. Official data available from the Ministry of Finance showed that the total outstanding obligations of states under the SASCI scheme between FY21 and January FY25 amounted to £ 3.28 trillion. Read also | The economy of China grew before rates kicked in the states with the highest obligations under the centrally sponsored scheme, was Uttar Pradesh (£ 40,410 crore), Madhya Pradesh (£ 32,995 crore), Bihar (£ 30.882 crore), Rajasthan (£ 22.680), West -Bengal (£ 1963 crore) Maharashtra (£ 19.811 crore) and Andhra Pradesh (£ 18,354 crore). To be sure, Finance Minister Nirmala Sitharaman increased the interest-free loan award to states to £ 1.5 billion, in both the budgets of 2024-25 and 2025–26, of £ 1.10 trillion paid out in 2023-24. However, the FY25 awards were revised up to £ 1.25 trillion in the latest budget, reflecting the slowdown in the first half of the year. During the first eight months of FY25, the center released only £ 50,571.42 to states as yields under the interest-free Capeex loan scheme. However, payouts rose in the second half of FY25, which compensated the delay -related delays in the first half, and the center is on track to reach the expenditure goal for the scheme, the second person mentioned above, who also does not want to be mentioned. “It is seen as an effective tool for states to increase capital expenditure and thus support growth. The momentum is expected to continue in FY26,” the person added. A spokesman for the Ministry of Finance did not respond to email questions. According to a recent CareEdge ratings report, formerly Care Ratings, states are unlikely to fully utilize the available Capeex loans under the center’s 50-year interest-free conditions in FY25 due to a slow start of the year as a result of the election. “It is extremely important to carefully monitor the actual manual by states, as they have historically struggled to fully utilize their budgeted Capex awards,” the report states. “Based on the current trends, it is likely that states will underutilize the interest-free Capeex loan offered by the center (during FY25),” he added. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Endia #india #indian Economy #debt #news Mint Special