Govt has decided to continue the 50-year interest free loan to state govts for one more year: Nirmala Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman has said that the government has decided to continue the 50-year interest free loan to state governments for one more year to spur investment in infrastructure and continuation of the Welfare scheme. In the Union Budget - 2023-24, the government has proposed an outlay of one lakh 30 thousand crore rupees towards this. 

Interacting with Industry body FICCI



in New Delhi, Mrs Sitharaman said, one lakh crore rupees was earmarked for interest free loan to states in 2022-23 and for next financial year, 30 thousand crore rupees more has been allocated. She said, out of this 80 per cent of the fund will be used by the states as per their requirement and 20 per cent will be for welfare schemes like one nation one ration card scheme.