NEW DELHI: The Centre will release Rs 95,082 crore to states onn November 22 as tax devolution amount, finance minister Nirmala Sitharaman announced on Monday.
Briefing the media after a virtual meeting with chief ministers and finance ministers of different states, Sitharaman said states had said that it would be helpful for them if the tax devolution is front loaded.
“I have suggested to the finance secretary that on November 22, instead of the normal monthly installment of tax devolution amount of Rs 47,541 crore, I have asked to release another Rs 47,541 crore – a total of Rs 95,082 crore will be given to states,” she said.
So, with this, states will have more money in their hands so that they can consider spending it for infrastructure creation, she added.
Currently, 41 per cent of tax collected is devolved in 14 instalments and states have a predictability of their cash flows, finance secretary T V Somanathan said.
This is an advance release, and any adjustments will be made in March, he added.
Chief ministers of 15 States, deputy chief ministers of 3 states, Jammu and Kashmir Lieutenant Governor Manoj Sinha, and finance ministers of other states participated in a meeting.
Some of them requested the finance minister for increasing the states’ capital expenditure.
“Some of the CMs requested for increasing the states’ capital expenditure. They said it would be helpful for them to get a part of the tax devolution. I have directed the finance secretary to do this immediately,” Sitharaman said in a press conference after the meeting.
Nirmala Sitharaman also noted that post-second Covid wave, India is witnessing robust economic growth. However, she reiterated that its also the time to look at ways to sustain growth and take it to double digits.
(With inputs from agencies)
Briefing the media after a virtual meeting with chief ministers and finance ministers of different states, Sitharaman said states had said that it would be helpful for them if the tax devolution is front loaded.
“I have suggested to the finance secretary that on November 22, instead of the normal monthly installment of tax devolution amount of Rs 47,541 crore, I have asked to release another Rs 47,541 crore – a total of Rs 95,082 crore will be given to states,” she said.
So, with this, states will have more money in their hands so that they can consider spending it for infrastructure creation, she added.
Currently, 41 per cent of tax collected is devolved in 14 instalments and states have a predictability of their cash flows, finance secretary T V Somanathan said.
This is an advance release, and any adjustments will be made in March, he added.
Chief ministers of 15 States, deputy chief ministers of 3 states, Jammu and Kashmir Lieutenant Governor Manoj Sinha, and finance ministers of other states participated in a meeting.
Some of them requested the finance minister for increasing the states’ capital expenditure.
“Some of the CMs requested for increasing the states’ capital expenditure. They said it would be helpful for them to get a part of the tax devolution. I have directed the finance secretary to do this immediately,” Sitharaman said in a press conference after the meeting.
Nirmala Sitharaman also noted that post-second Covid wave, India is witnessing robust economic growth. However, she reiterated that its also the time to look at ways to sustain growth and take it to double digits.
(With inputs from agencies)
For all the latest business News Click Here
Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
