Union Budget, 2022: FM Allocates Rs. 1 Lakh Crore To States To Catalyse Investments

In the Union Budget 2022-2023, Union FM Nirmala Sitharaman announces that the states will receive Around Rs. 1 lakh crore to catalyze the investment picture in the economy. This allocation is aimed to enhance the individual states' development. The budget added, "These fifty-year interest-free loans are over and above the normal borrowings allowed to the states."

This above-mentioned allocation amount will be used for PM GatiShakti related and other productive capital investments of the states. It will also include components for Supplemental funding for priority segments of PM Gram SadakYojana, including support for the states' share, Digitisation of the economy, including digital payments and completion of OFC network, and Reforms related to building byelaws, town planning schemes, transit-oriented development, and transferable development rights.

Additionally, FM Sitharaman mentions, "The 'Scheme for Financial Assistance to States for Capital Investment' has been extremely well received by the states. In deference to the requests received during my meeting with Chief Ministers and state Finance Ministers, the outlay for this scheme is being enhanced from Rs. 10,000 crore in the Budget Estimates to Rs. 15,000 crore in the Revised Estimates for the current year."