By NNN-PTI,
New Delhi : The Centre (Federal govt) asked the states to expedite public expenditure and give special attention to the implementation of ongoing and new schemes to stave off the impact of global slowdown on the economy.
“It is very important that speed of expenditure should be increased, Chief Ministers have to play very important role to ensure that there is sufficient progress of these schemes all over the country,” Cabinet Secretary K M Chandrasekhar said in a meeting with state chief secretaries on implementation of economic stimulus measures here on Saturday.
The contraction of external finance as well as general loss of confidence are leading to shortage of credit and acting to dampen general economic activity, he added.
“The Prime Minister has written (in a letter to the Chief Ministers) that special attention should be paid on the implementation of various schemes in the states as the implementation and expenditure should be through the states,” the Cabinet Secretary said.
“Of special interest of today’s meeting would be the decision to allow states to raise additional market borrowings of 0.5 per cent of their gross states domestic product, providing additional budgetary support of Rs 20,000 crore under major programmes such as Indira Awas Yojna, Pradhan Mantri Gram Sadak Yojna and AIBP…,” Chandrasekhar said.
He said one of the measures taken in the stimulus package was to issue advisory to Central PSUs and state PSUs to ensure prompt payment of bills of micro, small and medium enterprises.
In order to insulate vulnerable sections from adverse impact of the global slowdown, the Prime Minister in a letter had asked the states to formulate new housing schemes, especially for low- and middle-income group.