Three northeastern states Manipur, Meghalaya andNagaland are among 11 states in the country, which have achieved the target set by thefinance ministryfor (CAPEX) in the first quarter of 2021-22. As an incentive, they have been given permission for additional open market borrowings by the expenditure department.
The other states are Andhra Pradesh,
It said the capital expenditure had a high multiplier effect, enhancing future productive capacity of the economy and resulting in a higher rate of economic Growth. Accordingly, out of the net borrowing ceiling of 4% ofGSDPfor the states for 2021-22, 0.50% of GSDP was earmarked for incremental capital expenditure to be incurred by states during 2021-22. The target for incremental capital expenditure for each state to qualify for this incremental borrowing was fixed by expenditure department.