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Centre to release Rs 47,541 crore as advance tax devolution to states

New Delhi, Jan 20 (UNI): Finance Minister Nirmala Sitharaman on Thursday authorised the release of Rs 47,541 crore as an advance instalment of tax devolution to states.

This is in addition to the regular devolution for January 2022 and hence Rs 95,082 crore would be transferred to states during this month.

“This is in line with the commitment of Government of India to strengthen the hands of states to accelerate their capital and developmental expenditure to ameliorate the deleterious effects of Covid-19 pandemic,” Finance Ministry said in a statement.

The Centre had released the first advance instalment of tax devolution amounting to Rs 47,541 crore to states on November 22 last year.

“With the release of the second advance instalment today, the states would have received an additional amount of Rs 90,082 crore under tax devolution over and above what has been budgeted to be released till January, 2022,” the ministry said.

It further noted that release from the Government of India of the back-to-back loan amounting to Rs 1.59 lakh crore to state governments in lieu of GST compensation shortfall in FY 2021-22 was completed by the end of October 2021.

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