New Delhi, July 13 -- The Centre's disbursal of 50-year interest-free capital expenditure loans to states has more than doubled year-on-year to around Rs.30,000 crore so far in the current fiscal, The Financial Times reported, citing a senior government official.

Sanctions under the scheme had reached Rs.40,000 crore as of last week, against a budgeted outlay of Rs.1.5 lakh crore for all states in FY26.

Two-thirds of the capex loans earmarked for FY26 are linked to governance and financial sector reforms.

These include creation of municipal cadres, finance-related initiatives such as an integrated property tax portal, and urban land and planning improvements.

States are also expected to show growth in their own capital spending and ex...