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Budget 2025: More amount available in 50 year interest free loan scheme –

by Aaryan Srivastav
December 21, 2024
Budget 2025: More amount available in 50 year interest free loan scheme - India TV Hindi

Photo:FILE Nirmala Sitharaman

In a pre-budget meeting with Union Finance Minister Nirmala Sitharaman on Friday, state finance ministers demanded more funds under the 50-year interest-free loan scheme. Sitharaman said in her statement that due to healthy macroeconomic environment, speedy and efficiency in tax collection, the amount transferred to states in the last 45 months under the 15th Finance Commission is more than the amount transferred in 60 months under the 14th Finance Commission. “The Union Finance Minister also mentioned the Scheme for Special Assistance to States for Capital Investment (SASCI), which was first announced in the Union Budget 2020-21,” an official statement said. It has received a very good response from the states.

Punjab and Kerala demanded flexibility in borrowing

Giving this information, sources said that financially stressed states like Punjab and Kerala also demanded special packages and flexibility in borrowing. States sought higher borrowing limits as well as additional funds under the Jal Jeevan Mission from the Central government to support fiscal activities. According to sources, Maharashtra sought funds for ‘Mukhyamantri Majhi Ladki Bahin Yojana’ and asked that a Centrally Sponsored Scheme (CSS) be launched with 50-50 per cent cost sharing by the Center and the state.

General budget will be presented on 1 February

The general budget for the financial year 2025-26 will be presented in Parliament on February 1, 2025. Finance ministers of all the states along with Sitharaman participated in the meeting organized for consultation in this regard. Sources said several states sought to increase the allocation for the 50-year interest-free loan scheme. He also requested for more flexibility in the Special Assistance for Capital Investment (SASCI) scheme under this category. With regard to road and rail infrastructure, the states stressed the need for road development projects and railway projects, sources said. He also demanded an increase in the honorarium being given to Accredited Social Health Activists (ASHAs).

More funds received for disaster relief

Sources said some states asked the central government to bear a major part of the land acquisition cost for the projects. He pointed out that the states stressed the need for additional funds for disaster relief and pressed for higher allocation for the State Disaster Response Fund (SDRF). Kerala Finance Minister KN Balagopal said that fiscal consolidation achieved by imposing restrictions on government expenditure may not have desirable consequences.

(With inputs from PTI/Language)

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