Govt to provide special aid to States for road sector reforms

Subject : Economy

Section : Msc

Concept :

The Union Finance Minister has included road transport under the scheme for providing special assistance to States for capital investment.
Under this, States can get incentives for scrapping old vehicles.
It aims to provide incentives to State governments for scrapping government vehicles that are older than 15 years, waiver of liabilities on old vehicles, and tax concessions to individuals for scrapping old vehicles.

Special Assistance to States for Capital Investment 2022-23

An amount of ₹1.07 lakh crore has been allocated under the scheme.
It is provided to state governments in the form of 50 year interest free loan for capital projects.
The amount provided to states is over and above the Normal Borrowing Ceiling(NBC).
Financial assistance is provided through centre’s budgetary resources.
The amount will be disbursed in eight parts for various purposes like PM Gati Sakthi, PM Gram Sadak Yojana, incentive for digitalization, scrapping old vehicles, etc.