Centre releases over Rs 95,000 crore as 2 installments of tax devolution to states

The Centre on Wednesday said it has released two installments of tax devolution together to state governments, amounting to Rs 95,082 crore.
 
Uttar Pradesh received the highest proceeds at Rs 17,056.66 crore, followed by Bihar (Rs 9,563.30 crore), Madhya Pradesh (Rs 7,463.92 crore) and West Bengal (Rs 7,152.96 crore). The two installments were released on Tuesday, the Finance Ministry said in a release.

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Earlier this month, after a virtual meeting with chief ministers and finance ministers of states and union territories to discuss aspects of the economy post-COVID-19, Finance Minister Nirmala Sitharaman had said that the Centre would release additional devolution funds due to states on November 22 to enable them to spend more on capital expenditure.
 
"Many states suggested that it would be helpful for them to get a part of the tax devolution front loaded. This being an exceptional year, states will not be short of money when all of us are pushing for infrastructure," Sitharaman had said.
 
Normally, the Centre divides the states' 41 per cent share of revenues over 14 installments during the year. The monthly installment of devolution is normally Rs 47,541 crore.
 
Between April and September this year, the capex of 20 states showed an increase of 79 per cent over the previous year and 23 per cent over the pre-COVID-19 level of 2019-20.

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