New Delhi, 16/11: In a major announcement, the Centre on Monday decided to give over Rs 95,000 crore to states this month as part of their tax devolution amount to help them kick-start reforms and expedite capital expenditure to help the country achieve sustained double-digit economic growth after the Covid pandemic.
This is double the monthly amount of tax devolution to states. This was done on the request of certain states which wanted that part of tax devolution amount to be advanced to help them push their capital expenditure.
“I have suggested to the finance secretary that on November 22, instead of the normal monthly instalment of tax devolution amount of Rs 47,541 crore, another Rs 47,541 crore can be released. A total of Rs 95,082 crore will be given to states,” Finance Minister Nirmala Sitharaman said, emerging out of a meeting with state chief ministers and finance ministers.
“This is being done in consideration of the desire for states to have money in their hands, to help infrastructure creation expenditure,” Sitharaman said.
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