New Delhi: Rejecting criticism that the massive Rs 1.25 lakh crore Bihar package is a rehash of existing schemes, the Centre Thursday said it involves major additional outlays beyond the normal flow of central funds in which every scheme is a new work.
Necessary provisions for the schemes will be included in the budgets in the coming years, highly placed sources said, contradicting claims that no source of funding has been identified nor budgetary provisions made in the package announced by Prime Minister Narendra Modi.
The sources also allayed fears that the huge package would lead to fiscal deficit, saying the proposed expenditure will be in the nature of capital expenditure that will improve productivity and produce high rate of economic return.
"The commitment in the package is to launch and finish the non-started works," the sources said.
The central government asserted that the package is "a very specific and detailed list of works and not a vague collection of financial outlays" with each and every element identified and costed.
About the timelines, the sources said the time period for the package varies from item to item. Some may be implemented in a shorter period of time of 1-2 years while others may take longer.
"The commitment in the package is to provide funding for completion of the project in the stipulated period. The tax incentives for employment generation have already come into effect. It is for the state government to attract manufacturers and create jobs," they said.
The expenditure in the package will be partly from the central budget and partly from public sector undertakings, the sources said.