Early tax devolution to states to aid festivities
NEW DELHI : The Centre on Tuesday released ₹72,961.21 crore as tax devolution to states for the month of November, the finance ministry said. The payment was made three days in advance to enable state governments to make timely releases and “add to the festivities and celebrations among the people", it added.
The Centre normally releases funds under tax devolution to states on 10th of each month. In the past too, releases have been advanced to facilitate states in their fight against covid and also to help push capital spending.
Tax devolution is a major source of funds for states, used for spending on development, welfare and priority-sector projects and schemes. Currently, 41% of taxes collected by the Centre is devolved in 14 instalments to states during a fiscal year.
Of the November funds released by the Centre, the largest chunk will go to Uttar Pradesh at ₹13,088.51 crore, followed by Bihar, Madhya Pradesh, West Bengal and Maharashtra at ₹7,338.44 crore, ₹5727.44 crore, ₹5488.88 crore and ₹4608.96 crore respectively. Goa will get only ₹281.63 crore, Manipur ₹522.41 crore, Mizoram ₹364.80 crore and Sikkim ₹283.10 crore.Milestone Alert!
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