Centre to release additional ₹47,541 cr to states to boost expenditure: FM

Finance Minister Nirmala Sitharaman on Monday directed the finance secretary to release additional 47,541 crore to states, that requested for the funds to increase expenditure. 

Sitharaman today held a meeting with chief ministers and state finance ministers on post-Covid economic recovery. 

During the meet, some chief ministers requested for frontloading of a part of the tax devolution for the current financial year in order to increase the states’ capital expenditure. 

“I have suggested to the Finance Secretary that on 22nd November, instead of the normal monthly installment of tax devolution amount of 47,541 crore, I have asked to release another Rs. 47,541 crore – a total of 95,082 crore will be given to states on Nov 22,” Sitharaman said. 

This is being done in consideration of the desire for states to have money in their hands, to help infrastructure creation expenditure, she added. 

The finance minister informed that the GST compensation agreed upon for this entire year has already been given by early November.  She said that the Centre has frontloaded many of the dues to states, which has been duly recognized by them. 

“50-year interest-free capital expenditure money given to states, almost like a grant, has been well-received, many states they want the scheme to be continued,” Sitharaman said. 

Some states highlighted the need for offshore wind energy generation policy. “It was a very useful session, deliberating on the way in which we want to move forward post the pandemic and push for better and speedier growth,” she added.

Today’s meeting was to seek states’ ideas in pushing growth forward, since in many of the issues such as manufacturing, development and investment, it is the states who do from the forefront, support from the Centre being there always, the finance minister said.  

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