The fine print on the exact amount to be tied to this measure is yet to be determined and guidelines are awaited as the Finance Ministry is in discussions with the Ministry of Housing and Urban Affairs. say if they get an investment-grade credit rating.Something that is measurable as an outcome will lead to release of funds." Two, there could be an intermediate stage. One, when the actual raising of municipal bonds happens. "The (particular) component will be used to give money if certain milestones in raising bonds are achieved. The states are free to choose the path to raise funds and will be rewarded based on the milestones they achieve. The motive is to augment finances of the municipality either via increased municipal taxation or municipal cost recovery and fee collection, value capture financing, betterment levies in the vicinity of a metro, etc. This could happen through augmenting general revenues by property taxes it could happen through creating special purpose vehicles, where part of the revenue is escrowed/ring-fenced and then they can use that to raise municipal bonds." "Our aim will be to get a number of municipalities to bring themselves to a position where they can raise funds through municipal bonds. Somanathan said that the approach, in terms of how the components of special assistance to states can be used, is flexible. He listed the possibilities of municipal bonds, which is one of the 'tied reforms'-linked to completion of some of the reforms-under the scheme. It translated into a higher outlay under the 'Scheme Special Assistance to States for Capital Investment', more commonly known as the 50-year interest-free loan.įinance Secretary TV Somanathan told BQ Prime, in an exclusive conversation, that he is confident of states picking up the capex outlay this time around. Social media integration will set cookies through the website which may be used to enhance your profile on social media sites or contribute to the data they hold for various purposes outlined in their respective privacy policies.The Union Budget 2023 continued its aggressive capital expenditure push, driving up the target by 33% in the new fiscal. We also integrate with social platforms on this site that allow you to connect with your social network in various ways. Purpose: Used by Google Analytics to throttle request rate. Purpose: Registers a unique ID that is used to generate statistical data on how the visitor uses the website. None of this information can be used to identify visitors as all data is anonymized. These cookies collect information about how visitors use the website, like which pages they've visited and which links they've clicked on. Purpose: To be able to validate whether the visitor is human and to limit the amount of spam from contact forms. Purpose: To be able to show prices in the currency matching the visitor's preferences. Purpose: To be able to provide the website in the visitor's preferred language (if the website contains multiple languages). Purpose: To remember different visitor preferences on the website.ĭuration: For duration of browser session. These cookies are essential for visitors to be able to browse the website and use its features.
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