LUCKNOW Uttar Pradesh government has spent 51% of the capital expenditure (capex) target against the required 45% to get the second instalment of an interest-free loan for 50 years from the Centre under its special assistance scheme for the states.
The state government had set a target of incurring capital expenditure of ₹83,144 crore in 2023-2024. It was expected to spend 45% ( ₹37,415 crore) of the target by September 30, 2023, to get the second instalment.
“We have been able to spend 51% of the funds earmarked as capital expenditure in 2023-2024. It is more than what was required and thus the state will soon get the second instalment of central assistance of interest- free loan for 50 years for capital expenditure,” said minister for finance Suresh Khanna.
The state government is to receive ₹17,939 crore as interest-free loan from the Centre in 2023-2024 under the Special Assistance to States for Capital Investment scheme. He said the state government received a sum of ₹11,959.93 crore from the Centre last month and it was expected to spend 45% of the funds (earmarked for capex in 2023-2024) by September 30, 2023, to get the remaining instalment of about ₹5,979 crore.
A senior officer of the state government said Khanna presided over two review meetings to ensure that the capex targets were achieved. “It’s good for the state that we have been able to achieve what was required,” said the officer. The state government was able to spend only ₹23,348 crore by August 31, 2023, against the required capital spendings of ₹37,415 crore by September 30, 2023.
{{/usCountry}}A senior officer of the state government said Khanna presided over two review meetings to ensure that the capex targets were achieved. “It’s good for the state that we have been able to achieve what was required,” said the officer. The state government was able to spend only ₹23,348 crore by August 31, 2023, against the required capital spendings of ₹37,415 crore by September 30, 2023.
{{/usCountry}}UP’s five major departments - energy, PWD, transport, infrastructure and industrial development - had submitted 217 proposals involving capital expenditure of ₹17,939 crore in 2023-2024.
These included 164 proposals of ₹5026.52 crore of the PWD while infrastructure and industrial development department’s 20 proposals involved capital spending of ₹2,849.27 crore. The energy department’s 16 proposals involved capital spending of ₹9676.14 crore while the home (police) department’s 16 proposals indicated capital spending of ₹187.07 crore. The transport department’s only proposal involved a spending of ₹200 crore.
Besides ensuring 51% capital expenditure, the state government also ensured that 75% of the amount is spent on identified projects of these five departments. It proposes to spend all the funds earmarked for capital expenditure by the end of 2023-2024, and this is bound to take up the total capital spendings in the current financial year.