Finance Ministry releases Rs 45,000 crore as additional devolution to States in FY 2020-21
Direct Tax collections for last financial year go up by 5 pct to Rs 9.45 lakh crore
Finance Ministry today released Rs 45,000 crore as additional devolution to States in Financial Year 2020-21. This is an increase of 8.2 per cent over Revised Estimates 2020-21.
As per the Revised Estimates 2020-21, Rs 5,49,959 crore being 41 per cent of the shareable pool of taxes and duties were estimated to be released to the States. However, the Ministry of Finance has devolved an amount of Rs 5,94,996 crore, based on the initial estimates of the shareable pool that would be collected in 2020-21.
The Ministry of Finance has released these amounts to share the revenue buoyancy seen in the 4th Quarter of 2020-21 and the true spirit of fiscal federalism. The additional amount of Rs 45,000 crore was released in two installments of Rs 14,500 crore and Rs 30,500 crore.
Rs 14,500 crore was released along with the 14th regular installment of devolution on March 26, 2021, whereas the second installment of Rs 30,500 crore was released to the States yesterday, i.e. on March 31, 2021.