Archive · 19 Aug 2025
Central Capex Loans to States Cross Rs 40,000 Crore
The government is giving states money to spend on projects like roads and buildings, called capital expenditure.
They've already given over Rs 40,000 crore in interest-free loans this year, and aim for Rs 75,000 crore by September.
This program has a budget of Rs 1.5 lakh crore.
The money comes with rules: states need to improve things like city services, how they handle money, and how they plan land use.
They're also encouraging states to use digital tools for agriculture, like helping farmers and checking crop data, with some money set aside to encourage financial efficiency.
The Centre's interest-free loans for state capital expenditure have surpassed Rs 40,000 crore.
Total approvals are around Rs 60,000 crore, against a budget of Rs 1.5 lakh crore for FY26.
Capex loan disbursements are expected to reach approximately Rs 75,000 crore by September.
Two-thirds of FY26 capex loans are linked to governance reforms.
The Centre allocated Rs 6,000 crore to incentivize digital public infrastructure for agriculture.
- Who
- The Central government is providing loans to state governments.
- What
- The Centre is providing interest-free loans to states for capital expenditure.
- When
- In the current financial year, with expectations for disbursements by September.
- Where
- Across various states.
- Why
- To incentivize capital expenditure and encourage governance reforms and digital infrastructure.
Government's Perspective
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Financial Support
Government's Perspective
The government aims to provide financial assistance to states.
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- Loan Amount (So Far)
- Over Rs 40,000 crore
- Total Approvals
- Around Rs 60,000 crore
- FY26 Budget Estimate
- Rs 1.5 lakh crore
- Expected Disbursements (by Sept)
- Rs 75,000 crore
- Funds for Digital Agriculture
- Rs 6,000 crore