Archive · 25 Sep 2026
Centre Urges States to Increase Capital Spending with Loans
India’s central government wants more money to be spent on building infrastructure.
It is encouraging state governments to do this by offering loans that carry no interest for 50 years.
Expenditure Secretary V Vualnam said careful management of government money will support India’s goal of becoming a developed country by 2047.
He said this is especially important while global economic conditions are uncertain.
The government sends about Rs 5 lakh crore each year to states for centrally sponsored schemes.
A digital system helps send this money to the intended projects or people.
The government also has information about around 10 crore farmers.
It is exploring whether this information can help send fertilisers to the farmers who need them most.
The Centre is encouraging states to raise infrastructure spending through 50-year interest-free loans.
Expenditure Secretary V Vualnam said fiscal prudence is central to achieving the Viksit Bharat goal by 2047.
The government is focusing on increasing its own capital expenditure while promoting infrastructure investment by states.
About Rs 5 lakh crore is distributed annually through centrally sponsored schemes using the Public Financial Management System.
The government is considering using AgriStack data on about 10 crore farmers to better target fertiliser distribution.
- Who
- The Centre, state governments, and Expenditure Secretary V Vualnam.
- What
- The Centre is promoting capital expenditure and state infrastructure spending through 50-year interest-free loans, while using digital systems to target public funds and subsidies.
- When
- The announcement was made on Thursday; the capital-spending and fiscal-prudence efforts are linked to the goal for 2047.
- Where
- New Delhi, India.
- Why
- To strengthen fiscal foundations for the Viksit Bharat goal, improve infrastructure spending, and better direct public funds and fertilisers to intended beneficiaries.
- Loan duration
- 50 years
- Loan interest
- Interest-free
- Annual scheme disbursement
- About Rs 5 lakh crore
- Digital system
- Public Financial Management System (PFMS)
- Farmers in database
- About 10 crore
- Long-term goal
- Viksit Bharat by 2047