MP, Andhra Complete Three Reforms Stipulated By Centre, Get Additional Financial Assistance For Capital Expenditure

Madhya Pradesh and Andhra Pradesh have become the first group of states to complete three out of the four citizen centric reforms stipulated by the Ministry of Finance.

The two states have completed the One Nation, One Ration Card Reforms, Ease of Doing Business Reforms, and Urban Local Bodies Reforms, a Ministry of Finance statement said on Wednesday (6 January).

Consequent upon completion of reforms in the three sectors, the Ministry of Finance has decided to provide additional financial assistance amounting to Rs 1004 crore to these States under the newly launched Scheme of “Special Assistance to States for Capital Expenditure”, it added.

Andhra Pradesh will get an additional amount of Rs 344 crore while Madhya Pradesh has become entitled to receive Rs 660 crore for capital projects.

The scheme was announced by Finance Minister Nirmala Sitharaman on 12 October 2020 as part of AatmaNirbhar Bharat package.

The additional financial assistance for the capital expenditure is in addition to the permission of Rs14694 crore issued to these states for extra borrowings for completing the reforms, the ministry said.

The scheme of “Special Assistance to States for Capital Expenditure” is aimed at boosting capital expenditure by the state governments who are facing difficult financial environment this year due to the shortfall in tax revenue arising from the COVID-19 pandemic, it added.