Capex-funding plan for FY23 gets flak from some non-BJP ruled states

While Bengal, Kerala and TN hit out, Maharashtra welcomes Centre's move

The Rs 1-trillion allocation to states by Union finance minister Nirmala Sitharaman for capex spending in FY23 has drawn criticism from some non-BJP ruled states for lack of flexibility in the scheme.

In her Budget speech, Sitharaman announced that enhanced assistance will be provided to states through 50-year interest-free loans. These will be under the ‘Scheme for Financial Assistance to States for Capital Investment’.

The scheme — launched last year — had initially allocat­ed Rs 10,000 crore but revised the allocation to Rs 15,000 crore am­id growing demand from sta­tes. The most vocal among the states are West Bengal, Kerala