Govt releases ₹1.16L-cr tax devolution to states

NEW DELHI: The Union government on Thursday released two instalments of tax devolution totalling over ₹1.16 lakh crore to states to help accelerate their capital expenditure.

“The Union government has released two instalments of tax devolution to state governments amounting to ₹1,16,665 crore today (Thursday), as against normal monthly devolution of ₹58,333 crore,” the finance ministry said in a statement. “This is in line with the commitment of Government of India to strengthen the hands of States to accelerate their capital and developmental expenditure.”

At the time when advanced economies are slowing down due to adverse geopolitical developments due to the Ukraine war, resorting to raising interest rates to calm unprecedented jump in inflation rates, Indian economy is growing at a faster pace and government is making all efforts to keep it up, an official aware of the development said.

“The Centre quickly transfers money to states from the tax kitty so that they can accelerate pace of public expenditures – both in capex and developmental works,” the official said, requesting anonymity. “There is no delay, in fact, we are releasing money in advance.”