State achieves CAPEX target for first quarter of 2021-22
Source: Chronicle News Service / DIPR
Imphal, September 14 2021:
Manipur has achieved the target set by the Ministry of Finance for Capital Expenditure (CAPEX) in first quarter of the current financial year 2021-22.According to Ministry of Finance, 11 states namely - Manipur, Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Meghalaya, Nagaland, Rajasthan and Uttarakhand have managed to meet the capital expenditure target set by the Ministry.
Thus, as an incentive, these states have been granted permission by the Department of Expenditure to borrow an additional amount of Rs 15,721 crore.
The additional open market borrowing permission granted is equivalent to 0.25 per cent of their Gross State Domestic Product (GSDP).
Additional financial resources thus made available will help the states in pushing their capital expenditure further.
To become eligible for incremental borrowing, states were required to achieve at least 15 per cent of the target set for 2021-22 by the end of 1st quarter of 2021-22, 45 per cent by the end of 2nd quarter, 70 per cent by the end of 3rd quarter and 100 per cent by March 31 2022.Next review of capital expenditure of states will be undertaken by the Department of Expenditure in December, 2021.In this round, capital expenditure achieved by the states till September 30, 2021 will be assessed.
It may be mentioned that Capital expenditure has a high multiplier effect, enhances the future productive capacity of economy and results in a higher rate of economic growth.