ITANAGAR: While conveying the opinion of Arunachal Pradesh government, Deputy Chief Minister Chowna Mein discussed the modalities for meeting the shortfall of compensation cess with Finance Minister Nirmala Sitharaman.
Participating in the continued session of the virtual 42nd GST Council meeting on Monday, Mein fully supported the views of the Union Finance Minister, who chaired the meeting, an official communiqué informed here. The Centre has announced a set of measures to boost consumer spending and capital expenditure. This was the second fiscal support package announced to revive the Indian economy.
In a press briefing on Monday, the Union Finance Minister announced measures to support the States' capital expenditure in the current fiscal. She announced Rs 12,000 crore in special interest-free 50-year loans to be provided to the States, Rs 2,500 crore of which will go to north-eastern States, Uttarakhand and Himachal Pradesh. As much as 50 per cent of the amount will be given initially, and the balance after the first installment.
The money has to be spent before March 31, 2021, and can be used to settle suppliers' bills also. This money will be over and above the existing borrowing limits set for the States. The loan will be interest-free and the repayment will be after 50 years.
The Centre also intends to provide an additional allocation for capital spending of Rs 25,000 crore as additional budget for capital expenditure. This amount is to be provided for roads, defence infrastructure, water supply and urban development, and allocations will be made as part of the revised estimates of the budget, the communiqué added.
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