Centre to Convert Capex Loans to States into Grants, Announces FM Sitharaman

Finance Minister Nirmala Sitharaman has announced that the central government will convert a portion of the capital expenditure loans given to states into grants. This decision is part of an initiative to provide financial relief to states and enhance their fiscal capacity. The conversion is expected to incentivize states to boost their capital expenditure, which is crucial for economic growth. The move also underscores the Centre's support for state governments in managing their finances, especially in the context of the economic challenges posed by the COVID-19 pandemic.