Imphal (DIPR): Manipur has achieved the target set by the Ministry of Finance, Government of India for Capital Expenditure (CAPEX) in the first quarter of the current financial year 2021-22.
According to the Ministry of Finance, Government of India, 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 percent 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 percent of the target set for 2021-22 by the end of 1st quarter of 2021-22, 45 percent by the end of 2nd quarter, 70 percent by the end of 3rd quarter and 100 percent 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 will be assessed.
It may be mentioned that Capital expenditure has a high multiplier effect, enhances the future productive capacity of the economy and results in a higher rate of economic growth.