With reference to Special Assistance to States for Capital Investment 2023-24 scheme, consider the following statements:1.Under the scheme, special assistance is being provided to State Governments through the provision of secured loans and the reduction of interest amounts by half during the financial year 2023-24.2.It aims at providing incentives to States for the scrapping of State Government vehicles and ambulances, waiver of liabilities on old vehicles, providing tax concessions to individuals for scrapping of old vehicles, and setting up of automated vehicle testing facilities. Select the correct statements using the codes given below:

Q. With reference to Special Assistance to States for Capital Investment 2023-24 scheme, consider the following statements:
1.Under the scheme, special assistance is being provided to State Governments through the provision of secured loans and the reduction of interest amounts by half during the financial year 2023-24.
2.It aims at providing incentives to States for the scrapping of State Government vehicles and ambulances, waiver of liabilities on old vehicles, providing tax concessions to individuals for scrapping of old vehicles, and setting up of automated vehicle testing facilities.
Select the correct statements using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Notes:

Explanation –

Statement 1 is incorrect. Under the scheme, special assistance is being provided to the State Governments in the form of a 50-year interest-free loan up to an overall sum of Rs. 1.3 lakh crore during the financial year 2023-24.

Statement 2 is correct. The scheme also aims at providing incentives to States for the scrapping of State Government vehicles and ambulances, waiver of liabilities on old vehicles, providing tax concessions to individuals for scrapping of old vehicles, and setting up of automated vehicle testing facilities.

Source: ForumIAS

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS