Page 4 - Tax Devolution News Today

In a letter to Union Finance Minister Nirmala Sitharaman, Karnataka Chief Minister Siddaramaiah referred to the Finance Commission’s report for 2020-21 recommending Rs 5,495 crore in special grants to the state.

According to economists, Faster tax devolution is likely to encourage states to continue on the path of capital spending.

The previous Finance Commission submitted its report on 9 November, 2020, for the 5 fiscals -- 2021-22 to 2025-26 -- to the President.

The government on Thursday released two instalments of tax devolution to states totalling over Rs 1.16 lakh crore to help accelerate their capital expenditure.

This is in line with the commitment of Government of India to strengthen the hands of states to accelerate their capital and developmental expenditure, the Ministry of Finance said in a statement.

Tax devolution is part of Centres plan to strengthen the financial capabilities of States to accelerate their capital and development expenditure

"This devolution of taxes will enable Manipur to accelerate its capital and developmental expenditure," Manipur Chief Minister N Biren Singh said.

The central government on Wednesday released two instalments of tax devolution to states amounting to Rs 1,16,665.75 crore as against the normal monthly devolution of Rs.58,332.86 crore, the Ministry of Finance said. Uttar Pradesh has got the highest amount of Rs 20,928.62 crore followed by Bihar at Rs 11,734.22 crore. Narendra Modi Govt Releases Rs 1.16 Lakh Crore As Tax Devolution to States.

The central tax devolution is likely to rise to Rs 9.3 lakh crore in 2022-23 from Rs 8.8 lakh crore in 2021-22

The Finance Ministry, on Thursday (January 20), announced that the Centre will release an advance installment of tax devolution to the states amounting to Rs 47,541 crore.