Devolution Amount To States Doubled For November, Says Finance Minister
Taxes to be devolved to states for November will be doubled to help them meet their expenses, Union Finance Minister Nirmala Sitharaman has said.
"I have suggested to the finance secretary that in this month, to be specific on Nov. 22, along with the installment of devolution which is Rs 47,541 crore, I've asked finance secretary to release another Rs 47,541 crore, so a total of Rs 95,082 crore will be given to the states," she said following a virtual meeting with chief ministers, deputy chief ministers and finance ministers of 15 states on Monday.
"Some of the chief ministers requested that for increasing the state's capital expenditure, it would really be helpful for them to get a part of the tax devolution for the current financial year."
The capex frontloading to states, she said, was well received and "put the pedal in the same direction". The advance will afford more liquidity to the states to better plan their infrastructure projects, she said.
The devolution amount, according to Finance Secretary TV Somanathan, is 41% of the central taxes disbursed to states in 14 installments. Any difference between the budget estimates will be adjusted in March via three installments, he said.
Sitharaman said she took stock of the states' perspectives in the meeting, including their requirements for infrastructure, how far they've achieved their plans and their contribution to India's economic growth.
Watch Finance Minister's briefing here: