Centre Released 1,189 Crore Funds to AP Under Capital Expenditure: Govt

New Delhi: The Centre has provided Rs 1,189.79 crore assistance to Andhra Pradesh government during the FY 2020-21 and 2021-22, the Union Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha on Tuesday. In a written reply to a question by YSRCP Rajya Sabha member V. Vijayasai Reddy, the Minister said that the Central Government had launched a Scheme for Financial Assistance to States for Capital Investment in the financial year 2020-21 to assist the States in catalysing overall investments in the economy. 

These funds provided by the Centre to the States under capital expenditure would be treated as interest free loans for 50 year and are over and above the normal borrowings allowed to the states. The Union Minister said the capital expenditure will have a qualitative effect and thereby the future production capacity will be increased. As a result, it would lead to higher economic progress in the state, he added.