Three northeastern states Manipur, Meghalaya and Nagaland are among 11 states in the country, which have achieved the target set by the finance ministry for Capital Expenditure (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, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Rajasthan and Uttarakhand. While the additional borrowing permitted for Manipur is Rs 90 crore, for Meghalaya it is Rs 96 crore and Rs 89 crore for Nagaland.
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% of GSDP for 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 .