The finance ministry on Saturday said it has approved capital expenditure proposals worth Rs 9,879.61 crore of 27 states. Of this, Rs 4,939.81 crore has been released as the first instalment.

In a statement, the ministry said all states, except Tamil Nadu, have availed benefits of the newly announced scheme for “Special Assistance to States for Capital Expenditure”, which was announced on October 12 as part of the Aatmanirbhar Bharat package.

“So far capital expenditure proposals of Rs 9,879.61 crore of 27 states have been approved by the ministry of finance. An amount of Rs 4,939.81 crore has already been released to the states as the first instalment under the scheme,” it said.

The ministry said the scheme is aimed at boosting capital expenditure by the state governments who are facing difficult financial environment this year because of the shortfall in tax revenue arising from the Covid 19 pandemic.

“Capital expenditure has a higher multiplier effect, enhancing the future productive capacity of the economy, and results in a higher rate of economy growth. Therefore,despite the adverse financial position of the central government, it was decided to extend a special assistance to the state governments in respect of capital expenditure, in financial year 2020-21,” it added.

The capital expenditure projects have been approved in diverse sectors such as, health, rural development, water supply, irrigation, power, transport, education, urban development.