Confident of better disbursement of state capex loans FY27, says Sitharaman
This story was originally published at 17:13 IST on 2 February 2026
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--Sitharaman: Confident of better disbursement of state capex loans FY27
NEW DELHI – The government is "confident" of better disbursement of funds under its programme for 50-year interest-free loan to states for capital expenditure in the next financial year, Finance Minister Nirmala Sitharaman said. The government has earmarked INR 1.85 trillion under its scheme 'Special Assistance to States for Capital Investment' in 2026-27 (Apr-Mar).
The government ties a portion of the loan with specific reforms, which are notified every year. The government aims to notify all the attached reforms for FY27 by Mar. 31, Sitharaman told media at an interaction.
While the demand for the loan is largely strong among states, some states don't show efficiency in sending reform proposals, which hamper disbursement under the programme, Sitharaman said. The government had estimated INR 1.50 trillion for the loans in FY26, which has now been revised to INR 1.44 trillion. End
Reported by Krity Ambey, Priyasmita Dutta, and Sagar Sen
Edited by Akul Nishant Akhoury
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