Assam govt announces infra projects worth 11,900 crore

GUWAHATI: Buoyed by the commitment from Union finance minister Nirmala Sitharaman that GST compensation will be paid and there will be funds to meet the revenue deficit grant, Assam on Saturday partially relaxed Covid-induced austerity measures and announced infrastructure projects worth Rs 11, 900 crore.
Assam finance minister Himanta Biswa Sarma said, “When I met the Union finance minister, we discussed that the new compensation formula for GST and continuous release of revenue deficit grant will enhance the state government’s capacity of spending tremendously.”
He added, “We had discounted the month of April — we thought revenue deficit grant will not come and the Centre will not be able to pay GST compensation. The finance minister reconfirmed that she will honour the mandate of the finance commission and repay the loan which Assam will take for GST compensation.”
Stating that Assam has opted for the formula as suggested by the finance minister, Sarma added, “We are in a comfortable position. Comfortable not for spending left and right but comfortable to meet the budgetary commitments.”
Following the Covid-19 pandemic, Assam had put in place astute austerity measures. Barring a few of them, the government on Saturday decided to waive off these measures.
Sarma said, “The bar on refund for industries from state government is removed. However, provisions like purchasing any new vehicle without prior approval of the chief minister will continue.”