New Delhi, Dec 5 (KNN) There is a probability that the central government will extend its Rs 1.3 trillion interest-free loan for 50 years to states for another financial year in the upcoming union budget, reported Mint.

The interest-free loan for states is to boost capital expenditure and expedite policy reforms in the forthcoming budget right before the general election of 2024.

With growing demand for the fund as 74 per cent of the total corpus for 2023-24 is already sanctioned in just seven months of the current fiscal year, two officials aware of the matter told Mint on Monday.

The Scheme – Special Assistance to States for Capital Investment 2023-24 – ends on March 31 and may be extended for another financial year.

From the total budgeted corpus of Rs 1.3 trillion in 2023-24, the union government has already sanctioned over Rs 96,200 crore to states under the scheme in the first seven months of FY24, one of the official said.

(KNN Bureau)