Capital expenditure aid to states may be regular Budget feature

The amount is part of the Centre's Rs7.5 capex outlay for the next year.

The Centre is likely to make capital expenditure (capex) support to states a regular feature in future Budgets, Business Standard has learnt. This is being done as a lot of the public infrastructure – like mass transportation, rural roads, state highways – is being built by states, and that many of them will require multi-year support to expand their capacities.

Under the ‘Scheme for Financial Assistance to States for Capital Investment’, states were given 50-year interest free loans worth Rs 15,000 crore in financial year 2021-22 (FY22) and that number has been increased to Rs 1 trillion for FY23. The