Centre Pushes States to Boost Capital Spending with 50-Year Interest-Free Loans

The central government is encouraging states to increase their capital expenditure through a new financing mechanism offering 50-year interest-free loans. This move aims to boost infrastructure and development projects across regions.

The government also plans to leverage information technology to channel funds more effectively toward social sector schemes and subsidies. The initiative reflects efforts to enhance state-level spending on productive assets while ensuring efficient resource allocation.