New Delhi, Aug 1 (NVI): The central government has released an additional Rs 1.09 lakh crore as tax devolution to state governments, over and above the regular monthly transfer scheduled later this month.
The advance release will provide states with additional financial resources ahead of the normal devolution cycle, said a statement issued by the Union Finance Ministry.
It said Rs 1,09,019 crore was released today and that the amount is in addition to the normal monthly tax devolution, which is scheduled to be released on August 10.
Tax devolution is the Centre’s transfer of a share of its divisible tax pool to states based on the recommendations of the Finance Commission. Under the current arrangement, states receive 41 per cent of the Centre’s divisible tax pool.
The devolution is generally released in 14 instalments during a financial year. The additional release means states will receive the advance instalment now, while the regular monthly devolution for August will continue as scheduled on 10 August.
The move is expected to improve the cash position of state governments, enabling them to meet expenditure requirements and continue implementation of development and welfare programmes without waiting for the scheduled monthly transfer. (NVI)
