In a major development, the Assam government has decided to revoke the austerity measures that were put in place because of the coronavirus lockdown. The state government has further announced infrastructure projects worth Rs 11,900 Crore on Saturday.
"Recently, I met the Union Finance Minister. The new compensation formula for GST and the release of revenue deficit grant will enhance the state government's capacity of spending tremendously. In the month of April, we had discontinued (projects), we had thought revenue deficit grant will not come and the Government of India will not be able to pay GST compensation," said Assam Finance Minister Himanta Biswa Sarma.
Mr Sarma added that the Union Finance Minister Nirmala Sitharaman has also committed that the Centre will honour all the mandates of the finance commission and repay the loan that Assam will take for the GST compensation.
The Assam government has decided to lift the ban on the refund for industries from the state government. The ban on purchasing any new vehicle without prior approval of the Chief Minister will continue.
The Assam government further announced that the construction work of four new medical colleges will start soon.
The state government will set up nine women colleges, six degree colleges, and ten law colleges besides two flyovers, ahead of the 2021 assembly polls in the state.
