Centre asks states to expedite expenditure to arrest slowdown
The Centre said that policy framework is in place to take care of global slowdown and now the states will have to give special attention to the implementation of schemes and expedite public expenditure.india Updated: Jan 31, 2009 12:47 IST
The Centre on Saturday said that policy framework is in place to take care of global slowdown and now the states will have to give special attention to the implementation of schemes and expedite public expenditure.
In a letter to the Chief Ministers, "the Prime Minister had written that special attention should be paid on the implementation of various schemes in the state, the implementation and expenditure should be through the states," Cabinet Secretary KM Chandrasekhar said in a meeting with state chief secretaries on review of the stimulus packages.
"It is very important that speed of expenditure should be increased, Chief Ministers have to play very important role to ensure that there is sufficient progress of these schemes all over the country," the Cabinet Secretary added.
He said that to deal with the slowdown two stimulus packages have been announced by the Centre and RBI has also taken measures to inject liquidity into the system.
Quoting Prime Minister Manmohan Singh's letter, Chandrasekhar said the minister has stressed for housing of lower- and middle-income group and the state governments may provide land because in large urban areas hundreds of thousands of people are without homes.
"States are being allowed to raise additional market borrowings of 0.5 per cent of the Gross State Domestic Product, amounting to Rs 30,000 crore for all states for capital expenditure. Some states like Andhra Pradesh, Punjab and Kerala are active about it and others should also come forward," Chadrasekhar said.
In order to insulate vulnerable sections from adverse impact of the global slowdown, the Prime Minister in a letter yesterday asked the states to formulate new housing schemes, especially for low- and middle-income group.