UP Leads Capital Fund Scheme; States Demand Bigger Budget Share
Overview
Uttar Pradesh has secured the largest share of funds under the Scheme for Special Assistance to States for Capital Investment (SASCI), receiving over ₹52,000 crore. States are pressing the Union government for higher allocations in the upcoming budget, citing the scheme's success in fast-tracking asset creation and boosting capital expenditure. The ₹1.5 lakh crore scheme provides 50-year interest-free loans to states for productive investment.
UP Leads States in Capital Investment Funding
Uttar Pradesh has emerged as the top recipient of funds under the central government's Scheme for Special Assistance to States for Capital Investment (SASCI). The state has been sanctioned over ₹52,000 crore, significantly ahead of other states vying for capital expenditure support. This strong disbursement highlights the scheme's role in driving infrastructure development.
Scheme Details and Disbursements
The SASCI scheme, introduced in FY21, offers 50-year interest-free loans to states to boost capital spending. For the Union Budget 2025-26, an outlay of ₹1.5 lakh crore was provisioned. As of January 4, 2026, approximately ₹83,600 crore had been disbursed to state governments. Since its inception in October 2020, the scheme has released a total of around ₹4.50 lakh crore to state governments.
State Rankings and Future Prospects
Following Uttar Pradesh, Madhya Pradesh and Bihar each received over ₹36,000 crore in allocations. Maharashtra and Assam secured the fourth and fifth positions, respectively, with over ₹23,000 crore each. States participating in pre-budget meetings emphasized the need for the SASCI scheme's continuation with increased allocations, underscoring its effectiveness in accelerating asset creation and supporting productive investments.
