Patna: The Department of Expenditure (DOE) under the Ministry of Finance Union has enabled the Bihar Government to collect Rs 1,699 Crore through market loans, because it has met the target of 15% of the capital expenditure that has been intended for the first quarter.
from current fiscal.
The amount will increase gradually for the remaining three quarters.
When a statement released by Doe on Tuesday said Bihar was among 11 countries that had fulfilled the target of reaching 15% of expenses intended under the head of the budget capital expenditure related to the first quarter of 2021-22.
Because of this, 11 states have been permitted, as incentives, the opportunity to increase RS15,721 crore as a whole through market loans from financial institutions.
The increased money will be spent as a capital expenditure for the creation of assets such as bridges, hospitals and other infrastructure entities, and to meet the cost of payment of loans and other expenses.
This has been done after the first review of capital expenditure made by each state government.
Furthermore, the reviews will be conducted in December to assess the capital expenditure carried out until September, followed in March next year, and finally in June.
This center allows countries to raise money from the open market, but close to the total amount that can be raised in the financial year is 4% of state domestic products (GSDP).
During 2021-22 the budget presented in the State Assembly on February 22, GSDP estimation was placed above RS7.57 Lakh Crore.
Estimated expenditure for capital expenses for the creation of assets and loan payments is RS41.231 Crore, including RS30,786 Crore for expenses for the creation of productive assets, said source.
In a recent meeting with the Minister of Finance Union Nirmala Sitharaman, Deputy CM Tarkishore Prasad, which also holds a financial portfolio, argues to increase the location of the market loans for Bihar of 4% GSDP available to 5%.
This center has conditions that attach to an increase in the increase in money from the open market: that countries must meet at least 15% of capital expenditure during the first quarter (April to June), 45% during the second quarter (July to September), 70% during the quarter Third (October to December) and 100% in the fourth quarter (January to 31 March).
Bihar and the countries concerned will be permitted to raise money gradually over fiscal today in consentance with the achievements made in the next quarter.
However, if found in the final review in June next year that the target remains not actually met for four fiscal quarters, then it will have a bearing on increasing money through market loans by the state government concerned 2022-23, because incentives are permitted Customized, or trimmed.